Raymond James Financial Cuts AutoZone (NYSE:AZO) Price Target to $3,700.00

by · The Markets Daily

AutoZone (NYSE:AZO – Free Report) had its target price cut by Raymond James Financial from $4,000.00 to $3,700.00 in a report issued on Wednesday morning, Marketbeat reports. They currently have a strong-buy rating on the stock.

A number of other equities analysts have also recently issued reports on the stock. Oppenheimer cut their price objective on shares of AutoZone from $4,300.00 to $3,500.00 and set an “outperform” rating on the stock in a research report on Friday, September 18th. Morgan Stanley dropped their price target on AutoZone from $4,020.00 to $3,605.00 and set an “overweight” rating on the stock in a research note on Wednesday, May 27th. The Goldman Sachs Group cut their price target on AutoZone from $4,345.00 to $4,096.00 and set a “buy” rating on the stock in a report on Wednesday, May 27th. Evercore restated an “outperform” rating on shares of AutoZone in a report on Wednesday. Finally, Wells Fargo & Company cut their target price on AutoZone from $4,150.00 to $3,500.00 and set an “overweight” rating on the stock in a report on Thursday, September 10th. One research analyst has rated the stock with a Strong Buy rating, twenty have assigned a Buy rating and six have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $3,717.12.

Read Our Latest Research Report on AutoZone

AutoZone Stock Up 0.3%

Shares of AZO stock opened at $2,870.31 on Wednesday. The company has a market cap of $46.87 billion, a price-to-earnings ratio of 18.79, a price-to-earnings-growth ratio of 1.32 and a beta of 0.34. AutoZone has a 52 week low of $2,764.88 and a 52 week high of $4,332.68. The firm has a 50 day moving average of $2,976.93 and a 200-day moving average of $3,190.97.

AutoZone (NYSE:AZO – Get Free Report) last released its earnings results on Tuesday, September 22nd. The company reported $56.05 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.54 by $55.51. The company had revenue of $6.59 billion for the quarter, compared to the consensus estimate of $6.70 billion. AutoZone had a net margin of 12.65% and a negative return on equity of 90.08%. AutoZone’s quarterly revenue was up 5.6% compared to the same quarter last year. During the same quarter in the previous year, the company earned $48.71 EPS. Analysts anticipate that AutoZone will post 172.97 earnings per share for the current year.

AutoZone announced that its Board of Directors has approved a stock repurchase program on Tuesday, June 16th that authorizes the company to repurchase $1.50 billion in shares. This repurchase authorization authorizes the company to purchase up to 3% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company’s leadership believes its stock is undervalued.

Insider Activity

In related news, VP Dennis LeRiche sold 1,455 shares of AutoZone stock in a transaction that occurred on Friday, August 7th. The stock was sold at an average price of $3,100.00, for a total transaction of $4,510,500.00. Following the transaction, the vice president owned 441 shares of the company’s stock, valued at $1,367,100. The trade was a 76.74% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 2.60% of the stock is currently owned by insiders.

Hedge Funds Weigh In On AutoZone

A number of hedge funds have recently bought and sold shares of AZO. BlackRock Inc. bought a new stake in AutoZone in the 2nd quarter worth about $3,938,566,000. Norges Bank bought a new stake in AutoZone in the fourth quarter worth about $939,205,000. First Manhattan CO. LLC. raised its holdings in shares of AutoZone by 2.7% in the 4th quarter. First Manhattan CO. LLC. now owns 261,314 shares of the company’s stock worth $886,246,000 after purchasing an additional 6,765 shares during the period. Envestnet Portfolio Solutions Inc. increased its position in AutoZone by 247,417.8% in the second quarter. Envestnet Portfolio Solutions Inc. now owns 249,993 shares of the company’s stock worth $798,963,000 after buying an additional 249,892 shares during the last quarter. Finally, Mitsubishi UFJ Asset Management Co. Ltd. bought a new stake in AutoZone in the 2nd quarter valued at about $572,885,000. 92.74% of the stock is owned by hedge funds and other institutional investors.

AutoZone News Summary

Here are the key news stories impacting AutoZone this week:

  • Positive Sentiment: Strong earnings and free cash flow: AutoZone reported fiscal Q4 revenue of approximately $6.59 billion, up 5.6% year over year, while earnings exceeded expectations. Strong free-cash-flow margins and the company’s cash-generation profile are fueling the view that AZO shares may be undervalued. One analysis estimates roughly 28% upside based on forecasts, valuation multiples and analyst price targets. AutoZone Generates Strong Q4 Free Cash Flow – Is AZO Stock Too Cheap?
  • Positive Sentiment: Jefferies maintains a Buy rating: The continued bullish stance reinforces investor confidence in AutoZone’s earnings resilience and long-term growth prospects. Jefferies Remains a Buy on AutoZone
  • Positive Sentiment: Store expansion supports the investment narrative: Record fourth-quarter results alongside continued store growth suggest management is expanding AutoZone’s earnings base and may improve its longer-term growth outlook. Did Record Q4 Results and Store Expansion Just Shift AutoZone’s Investment Narrative?
  • Neutral Sentiment: Mixed analyst actions: Goldman Sachs still rates AZO Buy and sees substantial potential upside, but reduced its target to $3,917 from $4,096. DA Davidson and Raymond James also cut their targets, while Roth Capital issued a more pessimistic forecast. These revisions temper the bullish reaction without changing the broader debate over valuation.
  • Negative Sentiment: Revenue missed expectations: Although sales increased year over year, quarterly revenue came in below the roughly $6.70 billion consensus estimate. The shortfall and cautious target revisions could limit upside if investors begin to question the pace of growth.

AutoZone Company Profile

(Get Free Report)

AutoZone, Inc is a retailer and distributor of automotive replacement parts, accessories, and maintenance products. The company serves do-it-yourself customers, professional service technicians, and commercial repair businesses through its stores, distribution network, and online platform.

Its product offerings include replacement parts such as batteries, brakes, engine components, and ignition products, along with tools, fluids, filters, and other automotive accessories. AutoZone also provides services such as parts lookup, diagnostic assistance, battery testing and charging, and loaner tools for eligible repairs.

Founded in 1979 and headquartered in Memphis, Tennessee, AutoZone operates primarily in the United States, with additional locations in Mexico and Brazil.

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