Oppenheimer Releases a Hold Rating on Advance Auto Parts

By Austin Angelo

Oppenheimer analyst Brian Nagel assigned a Hold rating to Advance Auto Parts (NYSE: AAP) today. The company’s shares opened today at $94.88, close to its 52-week low of $78.81.

Nagel commented:

“We walked away from the Advance Auto (AAP) Q3 (Sept.) conference call today still fretting over seemingly soft trends at the chain, but incrementally encouraged by a more upbeat tone of management toward the company’s repositioning efforts and the health of the broader environment. Q3 pro forma (Sept.) EPS of $1.43 topped a Street figure of $1.21 upon better gross margins and expense controls offsetting still soft sales. We are increasingly of the view that auto parts retail should represent one of the most interesting areas of Hardlines for 2018. We continue to prefer O’Reilly Auto (ORLY) and AutoZone (AZO), but are watching the turnaround efforts of AAP closely.”

According to TipRanks.com, Nagel is a 3-star analyst with an average return of 0.8% and a 51.8% success rate. Nagel covers the Services sector, focusing on stocks such as Restoration Hardware Holdings Inc, Lululemon Athletica Inc, and Dick’s Sporting Goods.

Advance Auto Parts has an analyst consensus of Moderate Buy, with a price target consensus of $97.65.

Advance Auto Parts’ market cap is currently $6.08B and has a P/E ratio of 16.46. The company has a book value ratio of 1.9427.

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Advance Auto Parts, Inc. operates as a retailer of automotive aftermarket parts, accessories, batteries and maintenance items. Its stores carry an extensive product line for cars, vans; sport utility vehicles and light trucks. The company was founded by Arthur Taubman in 1929 and is headquartered in Roanoke, VA.