02:00 PM EST, 12/09/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

Following AZO's quarterly miss, we lower our 12-month target to $3,800 from $4,500, based on a FY 27 P/E of 21.0x, a justified premium to its five-year average forward P/E of 19.8x. We also lower our EPS estimates to $156.50 from $167.25 for FY 26 and to $180.90 from $184.00 for FY 27. We think the earnings release will represent an important reset of expectations. Although AZO has hit a rough patch in terms of earnings execution (the release marked its sixth straight bottom line miss), we view gross margin headwinds (down 200 bps Y/Y during the quarter) as temporary and driven by a one-time LIFO charge. AZO's combination of new store openings, share count-reducing buybacks, international growth potential, and the secular tailwinds of the auto aftermarket should continue to drive longer-term growth. While AZO's bottom-line growth has hit a speed bump (-5% Y/Y in the quarter), we see growth resuming in the current quarter.