03:04 PM EDT, 09/23/2025 (MT Newswires) -- AutoZone ( AZO ) is likely to continue improving trends after reporting "solid" fiscal Q4 results earlier, Truist Securities said in a Tuesday note.

"Overall, the results were solid, the company pointed to a strong exit rate," the report said.

"The combination of greater same SKU inflation and rising new/used vehicle prices should lead to stronger top-line trends over the new few quarters," it added. SKU refers to stock keeping unit.

The report pointed to domestic same-store sales growing 4.8% and constant-currency enterprise same-store sales rising 5.1%, higher than Truist estimates of 4.3% and 4.8%, respectively.

The note also said its gross margins of 51.5% were 90 basis points below Truist expectations due to a noncash impact from its LIFO accounting, Truist said, adding that ex-LIFO gross margins would have been higher than its estimate.

Truist kept its buy rating on AutoZone ( AZO ) with a $4,504 price target.

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