Advance Auto Parts (NYSE:AAP) Earns “Buy” Rating from Evercore ISI

Evercore ISI reiterated their buy rating on shares of Advance Auto Parts (NYSE:AAP) in a research note issued to investors on Tuesday morning, AnalystRatings.com reports.

“We are trimming 2H19 EPS -$0.10/-3% ahead of 2Q results on Tuesday, as we incorporate recent labor inflation that has been widespread across retail. After choppy 2Q results are released, the setup for AAP starts to improve. Weather should normalize, and compares begin to ease on a 3 year basis next quarter, with 1Q20 comps more favorable still. Critically company specific comp and margin drivers ought to gain traction on a 12-18 month view, just as a rising 4-12 year old vehicle sweet spot helps provide a comp tailwind for AAP and peers. Tariffs remain a risk for all of retail, yet with 25% tariffs already in place on 90%+ of the auto parts imported from China today, AAP and peers are relatively well positioned on this front. 2Q expectations muted given read across from competitors. 2H19 guidance reduction likely.”,” the firm’s analyst commented.

Several other research firms have also weighed in on AAP. William Blair reaffirmed an outperform rating on shares of Advance Auto Parts in a report on Wednesday, May 22nd. Northcoast Research reaffirmed a neutral rating on shares of Advance Auto Parts in a report on Thursday, June 27th. Goldman Sachs Group began coverage on shares of Advance Auto Parts in a report on Thursday, July 11th. They set a sell rating and a $151.00 target price for the company. Zacks Investment Research raised shares of Advance Auto Parts from a hold rating to a buy rating and set a $161.00 target price for the company in a report on Wednesday, July 31st. Finally, Royal Bank of Canada cut their target price on shares of Advance Auto Parts to $178.00 and set an outperform rating for the company in a report on Tuesday, May 14th. One equities research analyst has rated the stock with a sell rating, six have issued a hold rating and fourteen have assigned a buy rating to the company. The stock has a consensus rating of Buy and a consensus price target of $181.28.

NYSE:AAP opened at $137.50 on Tuesday. The company has a debt-to-equity ratio of 0.76, a current ratio of 1.36 and a quick ratio of 0.31. The firm has a market cap of $10.20 billion, a price-to-earnings ratio of 19.28, a price-to-earnings-growth ratio of 1.50 and a beta of 0.87. The company has a 50 day moving average price of $152.66 and a 200-day moving average price of $159.99. Advance Auto Parts has a 1-year low of $130.09 and a 1-year high of $186.15.

Advance Auto Parts (NYSE:AAP) last posted its earnings results on Tuesday, August 13th. The company reported $2.00 earnings per share for the quarter, missing the consensus estimate of $2.22 by ($0.22). The firm had revenue of $2.33 billion for the quarter, compared to analysts’ expectations of $2.36 billion. Advance Auto Parts had a net margin of 4.52% and a return on equity of 15.16%. Advance Auto Parts’s revenue for the quarter was up .2% compared to the same quarter last year. During the same period last year, the firm earned $1.97 earnings per share. On average, sell-side analysts anticipate that Advance Auto Parts will post 8.03 earnings per share for the current fiscal year.

A number of hedge funds and other institutional investors have recently modified their holdings of AAP. Vanguard Group Inc. boosted its stake in Advance Auto Parts by 0.8% during the 2nd quarter. Vanguard Group Inc. now owns 7,477,868 shares of the company’s stock worth $1,152,638,000 after purchasing an additional 56,160 shares during the last quarter. BlackRock Inc. boosted its stake in Advance Auto Parts by 7.2% during the 2nd quarter. BlackRock Inc. now owns 5,326,148 shares of the company’s stock worth $820,972,000 after purchasing an additional 358,324 shares during the last quarter. Barrow Hanley Mewhinney & Strauss LLC boosted its stake in Advance Auto Parts by 16.9% during the 2nd quarter. Barrow Hanley Mewhinney & Strauss LLC now owns 4,379,461 shares of the company’s stock worth $675,051,000 after purchasing an additional 634,441 shares during the last quarter. JPMorgan Chase & Co. boosted its stake in Advance Auto Parts by 125.1% during the 2nd quarter. JPMorgan Chase & Co. now owns 2,721,715 shares of the company’s stock worth $412,910,000 after purchasing an additional 1,512,581 shares during the last quarter. Finally, American Century Companies Inc. boosted its stake in Advance Auto Parts by 26.7% during the 1st quarter. American Century Companies Inc. now owns 1,454,058 shares of the company’s stock worth $247,961,000 after purchasing an additional 306,824 shares during the last quarter. 99.11% of the stock is owned by institutional investors.

About Advance Auto Parts

Advance Auto Parts, Inc provides automotive replacement parts, accessories, batteries, and maintenance items for domestic and imported cars, vans, sport utility vehicles, and light and heavy duty trucks. The company offers battery accessories, belts and hoses, brakes and brake pads, chassis and climate control parts, clutches and drive shafts, engines and engine parts, exhaust systems and parts, hub assemblies, ignition components and wires, radiators and cooling parts, starters and alternators, and steering and alignment parts.

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Analyst Recommendations for Advance Auto Parts (NYSE:AAP)

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