AutoZone price target raised to $3,678 from $3,560 at Argus

Argus analyst Bill Selesky raised the firm’s price target on AutoZone (AZO) to $3,678 from $3,560 and keeps a Buy rating on the shares. The company’s slightly lower than expected Q1 earnings reflected continuing soft trends in consumer spending, unfavorable foreign currency translation, and higher operating expenses, though these were offset higher with net sales, improved gross margin and positive same-store sales comparisons, the analyst tells investors in a research note. AutoZone CEO also forecast an improvement in both DIY and Domestic Commercial sales trends, the firm adds, noting that it continues to see numerous opportunities for expansion of both sales and profit in the years ahead, largely due to commercial account growth, expansion in international markets – particularly in Mexico and Brazil – and the aging fleet of US vehicles.