11:43 AM EDT, 09/25/2024 (MT Newswires) -- AutoZone ( AZO ) missed sell-side consensus expectations for both revenue and earnings in fiscal Q4, however, long-term EPS growth strategy remains solid, and the stock valuation is considered attractive compared to O'Reilly Automotive (ORLY), Wedbush said in a note Wednesday.

AutoZone ( AZO ) saw its first per-share earnings miss since 2018, partly due to higher-than-expected last-in, first-out headwinds and foreign exchange pressure, the investment firm said.

The company expects its continuous investment in information technology and payroll to support its growth initiatives, mainly in commercial and international, to drive accelerating comparable store sales growth in fiscal Q1 of 2025 and beyond, Wedbush said.

Despite near-term challenges and a potentially softer fiscal 2025 EPS growth, Wedbush remains positive about AutoZone's ( AZO ) long-term growth prospects, according to the note.

Wedbush maintained its outperform rating for AutoZone ( AZO ), with a price target of $3,200.

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