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Research Alert: CFRA Reiterates Buy Opinion On Shares Of Autozone Inc.
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Research Alert: CFRA Reiterates Buy Opinion On Shares Of Autozone Inc.
Sep 23, 2025 9:29 AM

12:05 PM EDT, 09/23/2025 (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 $300 to $4,500, based on a FY 27 P/E of 24.5x, a justified premium to its five-year average forward P/E of 19.3x. We lower our FY 26 EPS estimate to $167.25 from $171.10 and introduce FY 27 at $184.00. Following AZO's quarterly miss, we are maintaining our Buy rating and raising our price target. Although AZO has hit a rough patch in terms of earnings execution (this release marked its fifth straight bottom line miss), we view gross margin headwinds - the driver of the miss - as temporary and driven by a one-time LIFO charge. We remain confident in AZO, focusing on the many positives surrounding the story: stronger-than-expected domestic same store sales growth (70 bps above consensus during the quarter), an acceleration of new store openings (304 net new stores opened in FY 25, up from 213 in FY 24), and ongoing share repurchases. Moreover, the record-high U.S. vehicle age and relative strength of the used vehicle market should continue to act as a secular growth driver for AZO.

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