(Updated to include BofA's commentary)
BofA Securities upgraded AutoZone (AZO) to Buy From Neutral and raised its price target to $4,800 From $3,900, reflecting increased confidence in the company's recession-resistant track record, sustained share gains in both DIY and Pro, and potential benefits from inflation-driven price increases.
The bank also sees improved dynamics in the used versus new car market and continued Pro tailwind from maturing commercial programs and roll-out of hubs and mega hubs, analyst Robert Ohmes wrote in a Wednesday note.
"We see opportunities for a return to 2%-4% industry inflation as auto parts retailers raise price to offset incremental tariff pressures," Ohmes said.
AutoZone has an average rating of overweight and mean price target of $3,964.82, according to analysts polled by FactSet.
(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)
Price: 3870.35, Change: -9.80, Percent Change: -0.25
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