Advance Auto Parts price target lowered to $39 from $41 at Truist

Truist lowered the firm’s price target on Advance Auto Parts (AAP) to $39 from $41 and keeps a Hold rating on the shares after Q3 results and Q4 profit expectations for “Remain co” were “sharply below forecasts.” To the company’s credit, they provided investors with a “tremendous amount of information today,” including quarterly proformas following the sale of Worldpac in early November, the analyst tells investors. However, while the firm says it appreciates the efforts of the new team and believe their operational/strategic changes are “logical,” Truist thinks there is risk to their projections and that investors will want to see more progress to buy in. The firm also notes that expected closure of about 520 stores “should be bullish” for key competitors including AutoZone (AZO), Genuine Parts (GPC) and O’Reilly Automotive (ORLY).