Advance Auto Parts ( NYSE: AAP ) fell 10.98% in early trading on Wednesday to $177.52 after setting guidance below expectations.
During the quarter, Advance Auto Parts ( AAP ) saw a decline in comparable store sales due primarily to a drop in DIY demand. AAP also warned that it expects high inflation and higher fuel prices to pressure DIY sales in the back half of the year.
On Wall Street, CFRA Research lowered its rating on Advance Auto Parts ( AAP ) to Hold from Buy following the retailer's slight EPS miss and below-consensus guidance.
CFRA analyst Garrett Nelson thinks the drop in DIY demand is likely to spook broader auto aftermarket retail.
CFRA clipped its price target to $200 based on a 2023 P/E ratio of 14X.
Shares of AAP have traded in a range of $164.00 to $244.55 over the last 52 weeks.
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Advance Auto Parts slides after earnings disappoint