03:00 PM EDT, 10/30/2025 (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:

We raise our 12-month target by $15 to $55, based on a FY 26 P/E of 21.2x, a justified premium to AAP's five-year mean forward P/E of 19.1x given longer-term growth expectations. We maintain our FY 25 adjusted EPS estimate of $1.80 for FY 25, but lower FY 26 to $2.60 from $2.75, and introduce FY 27 at $3.90. AAP narrowed FY 25 adjusted EPS guidance to $1.75-$1.85 from $1.20-$2.20 previously, implying Q4 adjusted EPS of $0.35-$0.45, below the current consensus estimate of $0.47. Despite the weak guidance, we raise our rating to Hold, as we think the recent closure of underperforming stores, along with improved liquidity ($3.17B of cash at quarter-end) and leverage ratios set the stage for a structurally stronger company going forward under the direction of CEO Shane O'Kelly. Moreover, we think AAP will benefit from a strong industry tailwind in the form of favorable U.S. auto aftermarket fundamentals, but we prefer other names due to their more generous cash returns to shareholders.