Advance Auto Parts price target lowered to $40 from $45 at BMO Capital

BMO Capital lowered the firm’s price target on Advance Auto Parts (AAP) to $40 from $45 and keeps a Market Perform rating on the shares. The company’s Q4 results primarily exceeded expectations, with preliminary 2025 guidance and 2027 objectives reiterated, but given that benefits from internal improvements – merchandising initiatives, supply chain improvements, and improved store operations – are more of a second-half story, the firm stays at neutral pending tangible operating improvements, the analyst tells investors in a research note.