Genuine Parts price target lowered to $135 from $162 at JPMorgan

JPMorgan lowered the firm’s price target on Genuine Parts (GPC) to $135 from $162 and keeps an Overweight rating on the shares. The firm says the company’s Q3 results, which fell well-below its lowered expectations, reflect wage and rent inflation running above Genuine’s plan, particularly in international, less cost flexibility six quarters into a slowdown, planned investment spending, and visibility challenges inherent in managing a global company when trends remain under pressure. The stock tends to move up when both sides of the business grow, and the opposite is true when they don’t, the analyst tells investors in a research note. JPMorgan took a “hard cut” to its estimates, pushing out the recovery in both businesses.