Goldman Sachs Sees AutoZone's Softer Domestic Comp As Dampener, Raises Other Concerns Too
Portfolio Pulse from Lekha Gupta
Goldman Sachs analyst Kate McShane maintains a Buy rating on AutoZone Inc (NYSE:AZO) with a price target of $3,000. AutoZone reported Q1 FY24 sales growth of 5.1% Y/Y to $4.19 billion, slightly missing consensus estimates. EPS of $32.55 beat both consensus and Goldman Sachs estimates. Domestic same store sales growth was lower than expected. McShane is looking for further details on the earnings call regarding various aspects of the business. She notes potential downside risks and provides revenue and EPS estimates for FY24 to FY26. AZO shares are up 0.27% at $2,671.22.
December 05, 2023 | 8:22 pm
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Goldman Sachs maintains a Buy rating on AutoZone with a $3,000 price target. Q1 FY24 sales slightly missed estimates, while EPS beat expectations. Concerns over domestic sales and potential future risks were raised.
Despite the slight miss in sales estimates, the EPS beat and the maintained Buy rating by Goldman Sachs suggest a neutral to positive outlook. However, concerns about domestic sales growth and potential downside risks could temper investor enthusiasm in the short term.
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IMPORTANCE 85
RELEVANCE 100