AZO - AutoZone attracts buy rating from Goldman Sachs as auto retail standout

AutoZone (NYSE:AZO) landed an upgrade from Goldman Sachs to Buy from Neutral with the auto retailer seen benefiting from its exposure to do-it-yourself. The firm thinks demand for older vehicle maintenance will increase as new auto supply remains under pressure. "We view the company as defensively positioned in the current environment as the majority of auto part sales (~83% for FY21) are non-discretionary, and as demand remains relatively inelastic, allowing AZO to pass through inflationary cost increases," updated analyst Kate McShane. Notably, AutoZone's "do it for me" segment is said to be gaining market share from companies coping with inventory and staffing troubles. Goldman Sachs assigned a price target of $2,296 to AutoZone (AZO). Shares of AZO rose 1.93% in premarket trading on Monday to $2,200.65 vs. the 52-week trading range of $1,472.31 to $2,267.40. Seeking Alpha author Bradley Guichard fired off a buy recommendation on AZO last week.

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AutoZone attracts buy rating from Goldman Sachs as auto retail standout