AutoZone (AZO) PT Raised to $1,650 at Jefferies

Jefferies analyst Bret Jordan raised the price target on AutoZone (NYSE: AZO) to $1,650.00 (from $1,455.00) while maintaining a Buy rating following third-quarter results, which showed commercial gains more than offset gross margin impact from DIFM mix.

The analyst commented, "At $26.48 AZO's Q3 EPS handily beat (by over 30%) our $18.94 est. as +28.9% comp was driven by record commercial growth (+44%) while +25% DIY comps benefited from stimulus. While gross margins saw some pressure from higher DIFM mix and strategic pricing initiatives, improved operating leverage drove a solid EBIT% beat. We continue to view AZO's LT cash-flow growth prospects favorably, and expect ongoing share repurchases to return capital to shareholders"

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