2023-03-24 09:33:07 ET
Genuine Parts Company ( NYSE: GPC ) shares gained modestly after Friday’s open as Truist upgraded the stock to Buy.
Equity analyst Scot Ciccarelli noted that the stock’s over 10% drop in the past month has shifted the risk/reward dynamics as the aftermarket auto parts industry remains resilient. The affordability of the company’s offerings should offer upside even amid macroeconomic uncertainty, he advised.
“In our view, elevated vehicle prices will continue to force consumers to invest in maintaining/repairing their existing vehicles rather than purchasing something else,” Cicarelli advised. “In addition, we believe same-SKU inflation will likely surprise to the upside in ’23, providing incremental upside sales potential.”
Cicarelli raised his rating on the stock to Buy from a prior Hold and maintained a $186 price target. Shares of Genuine Parts Company ( GPC ) rose 0.8% after the open.
Read more on the company’s latest earnings outlook .
For further details see:
Genuine Parts Company gains a bull as Truist shifts to Buy