AZO - AutoZone presents 'attractive buying opportunity' - UBS
2023-06-16 07:57:39 ET
AutoZone ( NYSE: AZO ) shares edged higher before the bell on Friday after UBS moved to Buy.
A team of analysts led by Michael Lasser advised that the company should continue to pick up market share given a stronger reputation among commercial customers. Additionally, profitability dynamics should improve as supply chain constraints ease.
“We upgrade AZO from Neutral to Buy as we think the current valuation has created an attractive buying opportunity,” the team explained. “The multiple has compressed in response to the perception that AZO’s commercial prospects have dimmed and the fear that the sector will see more price competition. As AZO shows evidence that it can successfully navigate through these risks, we believe its shares could rally.”
Lasser hiked his price target on the stock to $2900 from a prior $2800 alongside the upgrade. Shares of AutoZone ( AZO ) ticked 1.6% higher in premarket trading on Friday.
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AutoZone presents 'attractive buying opportunity' - UBS