O’Reilly Auto (ORLY) Receives a Buy from Wells Fargo

By Ryan Adsit

In a report released today, Zachary Fadem from Wells Fargo maintained a Buy rating on O’Reilly Auto (ORLYResearch Report), with a price target of $435. The company’s shares closed last Monday at $383.24.

Fadem observed:

“We note AZO has operated stores in Mexico since 1998, opening roughly 30-40 stores per year (~575 stores today), which in our view, adds validity to ORLY’s ability to successfully compete in the market ahead. Going forward, key questions include: 1) the size of Orma’s business, as 4 DC’s per store and 55 employees per store would imply considerable non-store volumes; 2) Orma’s DIY vs. DIFM mix; 3) Guadalajara region, where its stores are principally located; 4) Private label mix, if any, and product/vendor overlap with Supply chain integration opportunities under ORLY leadership.”

According to TipRanks.com, Fadem is a 5-star analyst with an average return of 12.5% and a 69.3% success rate. Fadem covers the Services sector, focusing on stocks such as National Vision Holdings Inc, Floor & Decor Holdings Inc, and Advance Auto Parts.

The word on The Street in general, suggests a Strong Buy analyst consensus rating for O’Reilly Auto with a $440.75 average price target, a 14.0% upside from current levels. In a report issued on August 7, RBC Capital also maintained a Buy rating on the stock with a $428 price target.

See today’s analyst top recommended stocks >>

The company has a one-year high of $414.63 and a one-year low of $314.14. Currently, O’Reilly Auto has an average volume of 604.8K.

Based on the recent corporate insider activity of 50 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of ORLY in relation to earlier this year.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.

O’Reilly Automotive, Inc. owns and operates retail outlets in the United States. It engages in the distribution and retailing of automotive aftermarket parts, tools, supplies, equipment, and accessories in the U.S., serving both professional installers and do-it-yourself customers.