AZO - AutoZone attracts bull rating from Argus with growth drivers in place

Argus raised its rating on AutoZone (NYSE:AZO) to Buy from Hold. Analyst Taylor Conrad: "The company's earnings have rebounded from their pandemic lows, and have now topped Street expectations for the past seven quarters. Management is taking steps to increase commercial sales, including adding new 'mega-hub' locations that offer a greater assortment of parts." Conrad and team also see opportunities for further growth for AutoZone (AZO) as the average age of vehicles increases and the retailer gains market share in the commercial segment. Argus lifts its FY22 EPS estimate to $111.00 vs. $105.80 prior and $111.72 consensus. The FY23 EPS estimate was pushed up to $122 vs. $113.90 prior and $122.28 consensus. On a valuation check, AZO shares are noted to trade at 18X the firm's FY22 EPS forecast vs. the peer average of 17X. Argus thinks the slight premium is merited based on the company's improving outlook. The new

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AutoZone attracts bull rating from Argus with growth drivers in place