11:16 AM EDT, 10/23/2025 (MT Newswires) -- O'Reilly Automotive (ORLY) is set to extend its market share gains as strong pricing power, solid margins and favorable industry trends underpin earnings growth into 2026, Morgan Stanley said Thursday in a report.

The firm said the company remains well-positioned to sustain mid-single-digit comparable sales growth into 2026 as do-it-for-me and do-it-yourself sales trends continue to improve. Higher selling, general and administrative expenses are expected to persist but are contributing to continued market share gains.

Morgan Stanley said the auto parts sector remains structurally strong, supported by an aging vehicle fleet and higher used car ownership. It raised its price target on O'Reilly to $115 from $105 and reiterated an overweight rating.

Price: 100.05, Change: -1.16, Percent Change: -1.15