Advance Auto Parts (NYSE:AAP) was downgraded by equities researchers at Deutsche Bank from a “buy” rating to a “hold” rating in a research report issued on Friday, TheFlyOnTheWall.com reports. They currently have a $106.00 price objective on the stock, up from their previous price objective of $92.00. Deutsche Bank’s price target would suggest a potential upside of 6.88% from the company’s current price.
The analysts wrote, “While we believe AAP’s recently announced acquisition of General Parts will be transformative for the company, we think that, as well as internal cost cutting initiatives, are now reflected in AAP’s valuation. Conversely, when we went from Hold to Buy over the summer, we thought the low valuation at that time reflected sales weakness and any positive news would be a catalyst, so the risk / reward was positive. But, after recent outperformance, this is no longer the case and we are moving to Hold from Buy even as we increase our price target to $106 from $92. The three reasons beyond our downgrade include a reduced risk / reward profile, integration risk from the deal, and weak industry trends.”
A number of other firms have also recently commented on AAP. Analysts at RBC Capital upgraded shares of Advance Auto Parts from a “sector perform” rating to an “outperform” rating in a research note to investors on Friday, October 25th. They now have a $116.00 price target on the stock, up previously from $103.00. Separately, analysts at Raymond James raised their price target on shares of Advance Auto Parts from $97.00 to $115.00 in a research note to investors on Wednesday, October 23rd. They now have a “strong-buy” rating on the stock. Finally, analysts at UBS AG raised their price target on shares of Advance Auto Parts from $95.00 to $110.00 in a research note to investors on Thursday, October 17th. They now have a “buy” rating on the stock. One research analyst has rated the stock with a sell rating, six have issued a hold rating, six have given a buy rating and one has assigned a strong buy rating to the company. The company presently has a consensus rating of “Buy” and an average target price of $134.64.
Advance Auto Parts (NYSE:AAP) traded down 0.70% on Friday, hitting $98.4895. 87,108 shares of the company’s stock traded hands. Advance Auto Parts has a 52-week low of $70.02 and a 52-week high of $88.74. The stock’s 50-day moving average is $87.37 and its 200-day moving average is $83.76. The company has a market cap of $7.183 billion and a P/E ratio of 18.69.
Advance Auto Parts (NYSE:AAP) last posted its quarterly earnings results on Thursday, October 31st. The company reported $1.42 earnings per share for the quarter, beating the analysts’ consensus estimate of $1.41 by $0.01. The company had revenue of $1.52 billion for the quarter, compared to the consensus estimate of $1.53 billion. During the same quarter last year, the company posted $1.21 earnings per share. Advance Auto Parts’s revenue was up 4.3% compared to the same quarter last year. Analysts expect that Advance Auto Parts will post $5.52 EPS for the current fiscal year.
The company also recently declared a quarterly dividend, which is scheduled for Friday, January 3rd. Stockholders of record on Friday, December 20th will be given a dividend of $0.06 per share. This represents a $0.24 dividend on an annualized basis and a yield of 0.24%.
Advance Auto Parts, Inc (NYSE:AAP) is a specialty retailer of automotive aftermarket parts, accessories, batteries and maintenance items primarily operating within the United States.
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