Bank of America Securities analyst Robert Ohmes maintained a Buy rating on O’Reilly Auto (ORLY – Research Report) today and set a price target of $1,600.00.
Robert Ohmes has given his Buy rating due to a combination of factors that highlight O’Reilly Auto’s strong market position and growth potential. The company is expected to report solid earnings per share and domestic comparable growth, even though there is a slight deceleration in sales due to external factors like the leap day impact and a slow start to the tax season. Despite these challenges, O’Reilly’s sales and transactions have outperformed competitors like AutoZone and Advance Auto Parts.
Another reason for the Buy rating is the anticipated gross margin expansion driven by improved vendor negotiations and increased proprietary brand penetration. Although there might be a slight offset due to a shift in sales mix, the overall margin outlook remains positive. Additionally, O’Reilly’s ability to manage tariff exposures and pass on costs to consumers, coupled with its recession-resistant business model, supports the Buy rating. The company’s ongoing market share gains, international expansion opportunities, and efficient supply chain further reinforce confidence in its long-term growth prospects.
In another report released yesterday, Wells Fargo also maintained a Buy rating on the stock with a $1,550.00 price target.
Based on the recent corporate insider activity of 74 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of ORLY in relation to earlier this year.