11:00 AM EDT, 05/21/2026 (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:

We lower our 12-month target by $5 to $65, based on a FY 27 P/E of 15.3x, a justified discount to AAP's 10-year mean forward P/E of 19.7x. Following AAP's stronger-than-expected Q1 earnings, we are raising our estimates but reducing our price target and maintaining a Hold. We increase our adjusted EPS estimates to $3.30 from $2.80 for FY 26 and to $4.25 from $4.15 for FY 27. AAP's strong earnings were consistent with the results we've seen from other aftermarket retailers, which indicated a much stronger-than-expected demand environment to start the year. Same store sales are coming in well above expectations, which we think is partially due to the record-high average U.S. vehicle age as well as strong used vehicle demand (i.e., vehicles in need of more frequent maintenance and repairs), noting that U.S. used vehicle inventories hit a record low in March. In turn, AAP's sales have led to improved fixed cost absorption and a significant margin beat, demonstrating the business model's operating leverage.