Mizuho Reiterates Neutral Rating on Advance Auto Parts (AAP)

Mizuho analyst David Bellinger reiterated a Neutral rating and $38.00 price target on Advance Auto Parts (NYSE: AAP).

The analyst commented: "Earlier this morning, Advance Auto Parts (AAP) announced the departure of two key executives within the company's accounting and finance division. In our view, such changes signal that the company's turnaround efforts remain in the very early stages of what could be a 3-5 year process. We recently hosted an expert call with Advance's former Chief Operating Officer, highlighting the heavy lift of rectifying supply chain issues and working through a highly complex aftermarket auto parts industry - all in real-time and going head-to-head with the likes of AutoZone and O'Reilly. We maintain our cautious view on shares and await further details around the company's RemainCo asset base post the Worldpac divestiture, cash flow prospects ahead, and how much of the company's nearer-term operating margin recovery is truly sales independent."

For an analyst ratings summary and ratings history on Advance Auto Parts click here. For more ratings news on Advance Auto Parts click here.

Shares of Advance Auto Parts closed at $38.69 yesterday.

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