Goldman Raises Price Target On AutoZone

Goldman Sachs raised its price target on AutoZone Inc. AZO to $258 from $246, but has a Sell rating on stock after the company reported earnings. In a note sent to investors Goldman writes, "AZO's 1Q11 quarter encompasses seven weeks of AAP and ORLY's 4Q; we see positive read-across of sequential acceleration in AZO yoy SSS comps. Within auto parts, we prefer AAP, given more plentiful margin drivers and ORLY, given CSK-related synergies." Shares of AZO lost $1.76 yesterday to close at $260.15.