Sterne Agee CRT Remains Neutral on AutoZone (AZO) Following 3Q15

Sterne Agee CRT maintains a Neutral rating on AutoZone (NYSE: AZO) Following F3Q15.

Analyst Ali Faghri commented on AZO, saying, "AZO reported F3Q15 EPS ahead of expectations, but missed on the top-line, with the majority of the beat coming from better than expected gross margin expansion. While the top-line miss was disappointing, it's explainable given the tough compare and the negative impact of an earlier tax refund season. In our view, AZO's story hinges on its commercial growth potential and we remain cautious on the company's ability to close the large commercial sales gap with competitors. With the stock trading at a peak multiple and the impact of buybacks moderating, we expect EPS growth to decelerate and limit upside for shares. We remain constructive on the auto parts retail sector but believe there are better company-specific opportunities in the group."

For an analyst ratings summary and ratings history on AutoZone click here. For more ratings news on AutoZone click here.

Shares of AutoZone closed at $688.43 yesterday.

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