Advance Auto Parts Has One Of The Biggest Opportunities To Reposition

Courtesy of Benzinga.

In a report published Friday, Credit Suisse analyst Seth Sigman reiterated an Outperform rating and $180.00 price target on Advance Auto Parts (NYSE: AAP).

In the report, Credit Suisse noted, “We continue to believe AAP offers among the greatest upside in our group, as it has one of the biggest opportunities to reposition its model to better service its customers as it integrates GPII (as shown in our survey last week here).”

The report continued, “However, that opportunity is well known, and despite some early wins on the integration and strengthening of its value proposition, the stock price appreciation has more than outstripped the financial progress to date and what is embedded in the outlook provided yesterday. The stock is cheap relative to peers, but that may not be enough if the synergy upside is indeed less. We are lowering our EPS estimates to align with AAP’s guidance.”

Advance Auto Parts closed on Thursday at $151.42.

Posted-In: Credit Suisse Seth SigmanAnalyst Color Reiteration Analyst Ratings