Mizuho Securities analyst David Bellinger has maintained their neutral stance on AAP stock, giving a Hold rating yesterday.
David Bellinger has given his Hold rating due to a combination of factors impacting Advance Auto Parts’ performance. The company’s Q4 results showed a decline in profitability, with revenue slightly ahead of expectations but gross margins weakening significantly. This was compounded by a substantial inventory adjustment and pressures from liquidation sales, which affected the overall financial outlook.
Furthermore, the company’s early operational tests and new initiatives, such as the new assortment framework and market hub access, are still in their infancy, with limited implementation. While there is potential for improvement, the current visibility into margin recovery remains limited. As a result, Bellinger maintains a cautious stance, awaiting more tangible progress before considering a more favorable rating.
AAP’s price has also changed moderately for the past six months – from $49.110 to $37.700, which is a -23.23% drop .