BMO Capital Markets Cuts AutoZone (NYSE:AZO) Price Target to $3,500.00

AutoZone (NYSE:AZO) had its price objective trimmed by BMO Capital Markets from $4,000.00 to $3,500.00 in a research report report published on Wednesday, MarketBeat.com reports. They currently have an outperform rating on the stock.

A number of other equities research analysts have also recently weighed in on the company. Wells Fargo & Company dropped their price target on AutoZone from $4,150.00 to $3,500.00 and set an “overweight” rating for the company in a report on Thursday, September 10th. Morgan Stanley lowered their price objective on shares of AutoZone from $4,020.00 to $3,605.00 and set an “overweight” rating for the company in a research report on Wednesday, May 27th. JPMorgan Chase & Co. cut their price target on AutoZone from $4,300.00 to $3,850.00 and set an “overweight” rating on the stock in a research note on Wednesday, May 27th. TD Cowen cut their target price on shares of AutoZone from $3,500.00 to $3,400.00 and set a “buy” rating on the stock in a research report on Wednesday. Finally, Weiss Ratings downgraded shares of AutoZone from a “hold (c+)” rating to a “hold (c)” rating in a research note on Thursday, July 23rd. One investment analyst has rated the stock with a Strong Buy rating, twenty have assigned a Buy rating and six have assigned a Hold rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $3,717.12.

AutoZone Trading Up 0.3%

NYSE AZO opened at $2,870.31 on Wednesday. AutoZone has a 1-year low of $2,764.88 and a 1-year high of $4,332.68. The stock’s 50 day moving average is $2,976.93 and its two-hundred day moving average is $3,190.97. The company has a market capitalization of $46.87 billion, a price-to-earnings ratio of 18.79, a PEG ratio of 1.32 and a beta of 0.34.

AutoZone (NYSE:AZO) last announced its quarterly earnings results on Tuesday, September 22nd. The company reported $56.05 EPS for the quarter, beating the consensus estimate of $0.54 by $55.51. AutoZone had a negative return on equity of 90.08% and a net margin of 12.65%.The business had revenue of $6.59 billion for the quarter, compared to analyst estimates of $6.70 billion. During the same quarter in the previous year, the firm earned $48.71 EPS. AutoZone’s quarterly revenue was up 5.6% on a year-over-year basis. On average, analysts predict that AutoZone will post 172.97 earnings per share for the current year.

AutoZone declared that its Board of Directors has approved a stock buyback program on Tuesday, June 16th that allows the company to buyback $1.50 billion in shares. This buyback authorization allows the company to reacquire up to 3% of its shares through open market purchases. Shares buyback programs are typically an indication that the company’s management believes its shares are undervalued.

Insider Activity at AutoZone

In other AutoZone news, VP Dennis LeRiche sold 1,455 shares of AutoZone stock in a transaction dated Friday, August 7th. The shares were sold at an average price of $3,100.00, for a total value of $4,510,500.00. Following the sale, the vice president owned 441 shares of the company’s stock, valued at approximately $1,367,100. The trade was a 76.74% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. 2.60% of the stock is owned by insiders.

Hedge Funds Weigh In On AutoZone

A number of institutional investors have recently added to or reduced their stakes in the business. BlackRock Inc. bought a new position in shares of AutoZone in the 2nd quarter worth $3,938,566,000. Norges Bank bought a new stake in shares of AutoZone during the 4th quarter worth $939,205,000. First Manhattan CO. LLC. grew its position in AutoZone by 2.7% in the fourth quarter. First Manhattan CO. LLC. now owns 261,314 shares of the company’s stock worth $886,246,000 after acquiring an additional 6,765 shares in the last quarter. Envestnet Portfolio Solutions Inc. increased its stake in AutoZone by 247,417.8% in the second quarter. Envestnet Portfolio Solutions Inc. now owns 249,993 shares of the company’s stock valued at $798,963,000 after acquiring an additional 249,892 shares during the last quarter. Finally, Mitsubishi UFJ Asset Management Co. Ltd. purchased a new stake in AutoZone during the second quarter valued at about $572,885,000. 92.74% of the stock is currently owned by institutional investors.

Trending Headlines about AutoZone

Here are the key news stories impacting AutoZone this week:

• Positive Sentiment: Strong earnings and free cash flow: AutoZone reported fiscal Q4 revenue of approximately $6.59 billion, up 5.6% year over year, while earnings exceeded expectations. Strong free-cash-flow margins and the company’s cash-generation profile are fueling the view that AZO shares may be undervalued. One analysis estimates roughly 28% upside based on forecasts, valuation multiples and analyst price targets. AutoZone Generates Strong Q4 Free Cash Flow – Is AZO Stock Too Cheap?
• Positive Sentiment: Jefferies maintains a Buy rating: The continued bullish stance reinforces investor confidence in AutoZone’s earnings resilience and long-term growth prospects. Jefferies Remains a Buy on AutoZone
• Positive Sentiment: Store expansion supports the investment narrative: Record fourth-quarter results alongside continued store growth suggest management is expanding AutoZone’s earnings base and may improve its longer-term growth outlook. Did Record Q4 Results and Store Expansion Just Shift AutoZone’s Investment Narrative?
• Neutral Sentiment: Mixed analyst actions: Goldman Sachs still rates AZO Buy and sees substantial potential upside, but reduced its target to $3,917 from $4,096. DA Davidson and Raymond James also cut their targets, while Roth Capital issued a more pessimistic forecast. These revisions temper the bullish reaction without changing the broader debate over valuation.
• Negative Sentiment: Revenue missed expectations: Although sales increased year over year, quarterly revenue came in below the roughly $6.70 billion consensus estimate. The shortfall and cautious target revisions could limit upside if investors begin to question the pace of growth.

About AutoZone

AutoZone, Inc is a retailer and distributor of automotive replacement parts, accessories, and maintenance products. The company serves do-it-yourself customers, professional service technicians, and commercial repair businesses through its stores, distribution network, and online platform.

Its product offerings include replacement parts such as batteries, brakes, engine components, and ignition products, along with tools, fluids, filters, and other automotive accessories. AutoZone also provides services such as parts lookup, diagnostic assistance, battery testing and charging, and loaner tools for eligible repairs.

Founded in 1979 and headquartered in Memphis, Tennessee, AutoZone operates primarily in the United States, with additional locations in Mexico and Brazil.