AutoZone (AZO) Stock: $2,420 Target And Overweight Rating

By Amit Chowdhry ● Jul 2, 2022
  • The shares of AutoZone Inc (NYSE: AZO) have received a $2,420 price target from Morgan Stanley. These are the details.

The shares of AutoZone Inc (NYSE: AZO) have received a $2,420 price target from Morgan Stanley. And Morgan Stanley analyst Simeon Gutman upgraded AutoZone to an “Overweight” rating from an “Equal-Weight” rating while increasing the price target from $2,125. 

Gutman adjusted the rating as the stock offers a 20% upside with an “attractive ~3:1 bull/bear skew.” And Gutman has more conviction in the durability of the company’s sales and earnings growth than for much of the retail coverage. 

Plus Gutman sees AutoZone as a self-help story and its commercial playbook is working and do-it-yourself auto is a defensive category. And Gutman noted that these factors enhance AutoZone’s earnings visibility amid an uncertain macro backdrop. Now Gutman favors defensive stocks with offensive characteristics.

In late May, AutoZone reported a Q3 EPS of $29.03, which was $2.98 higher than analyst estimates of $26.05. And the revenue for the quarter was $3.9 billion compared to the consensus estimate of $3.71 billion.

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.