Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Oppenheimer Analyst Downgrades AutoZone And This Stock With 'Tide Turning For Auto Parts'

Published 06/10/2023, 17:14
Updated 06/10/2023, 18:40
© Reuters.  Oppenheimer Analyst Downgrades AutoZone And This Stock With 'Tide Turning For Auto Parts'
AZO
-
ORLY
-

Benzinga - by Priya Nigam, Benzinga Staff Writer.

While O'Reilly Automotive Inc (NASDAQ: ORLY) is preparing to report results later this month, AutoZone Inc (NYSE: AZO) had various analysts revising their forecasts after its fourth-quarter print.

COVID-19 pandemic-related tailwinds for auto part retail could continue to fade, lowering prospects of sales and EPS upside, according to Oppenheimer.

Auto Part Retail Rating Changes: Analyst Brian Nagel downgraded the ratings for O'Reilly Automotive and AutoZone from Outperform to Perform, while lowering the price targets from $1,000 to $930 and from $2,850 to $2,600, respectively.

Check out other analyst stock ratings.

Auto Part Retail Thesis: While both O'Reilly Automotive and AutoZone enjoyed competitive advantages amid supply chain disruptions, smaller companies have successfully re-stocked since then and “are no longer ceding market share as readily,” Nagel said in the downgrade note.

“Ongoing and potentially intensifying labor strikes will impact auto production at leading manufacturers, at least nearer term,” the analyst wrote.

“That said, with pandemic-related auto production bottlenecks now moderating, we are increasingly of the view that supply and affordability of vehicles should gradually normalize, encouraging consumers to more aggressively trade into newer cars, thereby undermining somewhat outsized demand for aftermarket auto parts,” he added.

ORLY, AZO Price Action: Shares of O'Reilly Automotive and AutoZone were up by 1.10% to $903.59 and by 0.18% to $2,526.30, respectively, at the time of publication Friday.

Read Next: 'Lost All Visibility' On The Apple Car Project: It Isn't Coming Anytime Soon, Says Analyst

Photo: Shutterstock

© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Read the original article on Benzinga

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.