- 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.
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