Have Analysts Warmed Up to AutoZone Stock?



Wall Street on AutoZone stock

According to Reuters, of the 24 analysts covering AutoZone stock (AZO) 46% recommend “buy,” 50% recommend “hold,” and 4% recommend “sell.” Analysts’ consensus 12-month target price of $729 implies a good upside potential of ~17.2% based on its May 23 market price of $622.09.

On the negative side, analysts’ consensus target price for the company’s stock has fallen in the last three months, from $781 to $729. Despite slowing growth in AZO’s sales in recent quarters, its strong profit margins and expanding store network in the United States, Mexico, and Brazil could be why some analysts recommend “buy” for AutoZone stock.

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Peer comparison

Analysts’ views on other auto parts sellers and auto manufacturers (XLY) are as follows:

  • About 54% of analysts covering Advance Auto Parts (AAP) recommend “buy,” and their target price implies a ~1% upside potential.
  • About 68% analysts covering O’Reilly Automotive (ORLY) recommend “buy,” and their target price implies an ~8% upside potential.
  • Only 13% of analysts covering Ford (F) recommend “buy,” and their target price implies a ~7.4% upside potential.

In the next part, we’ll conclude the series with a review some of AutoZone stock’s key technical indicators.


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