Advance Auto Parts Faces Profitability Pressure Despite Turnaround Efforts, Says JP Morgan Analyst
Portfolio Pulse from Nabaparna Bhattacharya
JP Morgan analyst Christopher Horvers maintains a Neutral rating on Advance Auto Parts (AAP), lowering the price target to $43. AAP faces profitability challenges despite turnaround efforts, including a $1.5 billion Worldpac sale and management changes. The company's shares fell 4.62% following a disappointing Q2 earnings report and a reduced FY24 outlook.
August 23, 2024 | 6:40 pm
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Advance Auto Parts faces profitability challenges despite turnaround efforts. JP Morgan analyst maintains a Neutral rating, lowering the price target to $43. The company announced a $1.5 billion Worldpac sale and management changes, but shares fell 4.62% after a disappointing Q2 earnings report and reduced FY24 outlook.
The news highlights significant challenges for AAP, including a disappointing Q2 earnings report, a reduced FY24 outlook, and a major asset sale. These factors, along with a lowered price target from JP Morgan, suggest a negative short-term impact on the stock price.
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