AutoZone's Store Expansion Will Drive Market Share Gains, Morgan Stanley Analyst Predicts
Portfolio Pulse from Shivani Kumaresan
Morgan Stanley analyst Simeon Gutman reiterated an Overweight rating on AutoZone Inc (NYSE:AZO) but lowered the price target from $2,835 to $2,750. The analyst predicts that AutoZone's store expansion will drive market share gains. He expects a solid bounce-back in Q1 FY24 and forecasts +3.1% comps, ~30 basis points of gross margin expansion and ~$145.50 in EPS for FY24. In FY25, he models a ~3% comp, ~10 basis points of gross margin contraction and ~$160.60 in EPS.
September 20, 2023 | 5:11 pm
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Morgan Stanley analyst predicts AutoZone's store expansion will drive market share gains and expects a solid bounce-back in Q1 FY24.
The analyst's positive outlook on AutoZone's future performance, despite a lowered price target, indicates confidence in the company's growth strategy. This could potentially lead to an increase in investor confidence and a positive impact on the stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100