AutoZone price target raised to $3,450 from $3,400 at Wells Fargo

Wells Fargo raised the firm’s price target on AutoZone (AZO) to $3,450 from $3,400 and keeps an Overweight rating on the shares. The firm believes expectations are low for AutoZone’s fiscal Q1. Investor sentiment remains soft into the likely flattish Q1 comps, tougher gross margin compares and lingering pressures from trade down and deferrals, the analyst tells investors in a research note. Wells says AutoZone’s limiting downward estimates revisions is key for the Q1 report. Colder temperatures are coming into easier December and January compares and at a valuation discount to peer O’Reilly Automotive (ORLY) coupled with manageable tariff exposure, Wells like the setup for AutoZone shares, contends the analyst.