AutoZone added to ‘Tactical Underperform’ list at Evercore ISI

Evercore ISI is adding AutoZone (AZO) to the firm’s “Tactical Underperform” list as the analyst tactically likes the idea of taking near term profits in AutoZone and moving them in to the laggard O’Reilly Automotive (ORLY), which the firm notes has already reported a weaker spring trend. While the firm’s perspective on AutoZone remains constructive in the medium to longer term, it thinks that the softer fiscal Q3 and continued do-it-for-me, or DIFM, weakness could “spook investors, prompting a stock reaction in excess of ORLY’s 5% contraction after their earnings report,” the analyst says. Evercore has an Outperform rating and $3,300 price target on AutoZone shares.