AutoZone cut to Hold at Argus on challenged revenue and earnings due to tariffs

As previously reported, Argus analyst Bill Selesky downgraded AutoZone (AZO) to Hold from Buy. The company’s revenue and earnings growth will be materially challenged in the short-term, due to the initiation of U.S. tariff legislation against certain countries, where AutoZone conducts and sources a significant portion of its product assortment, the analyst tells investors in a research note. AutoZone has significant sourcing exposure in Canada, Mexico and China, the firm adds, also cutting its FY25 EPS view to $157.10 from $164.20 to reflect its Q2 earnings miss and factoring in a “slower-growth” business environment.