William Blair analyst Phillip Blee has maintained their bullish stance on AZO stock, giving a Buy rating today.
Phillip Blee’s rating is based on several key factors. AutoZone’s recent fiscal second-quarter results showed a mixed performance, with comparable sales growth exceeding expectations by nearly 100 basis points. This positive trend in sales, particularly in the commercial segment, indicates that the company’s strategic investments, such as the expansion of its mega-hub strategy, are beginning to pay off.
Despite a slight miss in earnings and EBIT margin compared to Street expectations, the improvement in commercial sales trends provides confidence in the management’s approach. The focus on domestic comp trends and the potential for future leverage in the business model further supports the Buy rating, as these elements suggest a solid foundation for future growth.
Blee covers the Consumer Cyclical sector, focusing on stocks such as Somnigroup International, Advance Auto Parts, and AutoZone. According to TipRanks, Blee has an average return of 14.0% and a 56.25% success rate on recommended stocks.
In another report released today, Roth MKM also reiterated a Buy rating on the stock with a $3,634.00 price target.