Advance Auto Parts (AAP) PT Raised to $210 at Sterne Agee CRT; $10 EPS Power in Focus

Sterne Agee CRT analyst Ali Faghri reiterated a Buy rating and raised his price target on Advance Auto Parts (NYSE: AAP) to $210.00 (from $180.00) following solid Q2 results.

"2Q15 results were solid and showed continued progress with the General Parts integration, but it was management's aggressive cost reduction plans that drove shares higher, with $10 + in 2016 earnings power coming into focus," Faghri commented. "The combination of favorable industry fundamentals, moderating integration headwinds, easy 2H comparisons, improved margin outlook, DIY business turnaround and the return of buybacks support our Buy rating."

The firm's 2015 EPS estimate of $8.30 is unchanged as better 2H DIY performance is offset by a moderation in DIFM. They are increasing 2016 EPS estimate to $10.00 from $9.50 to reflect the benefits of recently announced cost reduction actions. They are also introducing 2017 EPS estimate of $11.45.

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 $187.79 yesterday.

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