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Analysts’ Recommendations on AAP Stock before Its 3Q17 Results

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Recommendations for Advance Auto Parts

According to the latest consensus compiled by Thomson Reuters, 48% of the 27 analysts covering Advance Auto Parts (AAP) gave its stock “buy” recommendations. Another 41% of these analysts recommended a “hold,” and the remaining 11% analysts suggested a “sell.”

Target price for next 12 months

On November 7, analysts’ consensus 12-month target price for AAP stock was $106.08. This target price reflected an upside potential of ~33.6% from its market price of $79.38.

Despite the recent weakness in AAP’s revenues growth and profit margins, its large chain of stores could drive positive growth going forward. In addition, the company’s efforts to make its supply chain efficient could yield positive returns in the long run.

These factors could be among of the reasons for analysts’ expectations for AAP stock to deliver positive returns in the next 12 months.

Recommendations for peers

Analysts’ “buy” recommendations for other auto parts sellers and automakers (XLY), along with their consensus 12-month upside potential figures, follow:

  • About 44.0% of Wall Street analysts gave AutoZone (AZO) a “buy” recommendation with ~6.7% upside potential.
  • About 62.0% of analysts gave O’Reilly Automotive (ORLY) a “buy” rating with ~12.4% upside potential.
  • Only 17.0% of analysts gave Ford Motor (F) a “buy” rating with ~4.6% upside potential.
  • About 42.0% of analysts gave General Motors (GM) stock a “buy” with ~6.0% positive return potential.

Please visit our Autos page for reviews of automakers and auto parts sellers’ 3Q17 earnings reports.

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