Goldman Sachs Has Sell On Genuine Parts

Goldman Sachs is out with a research report on Genuine Parts Co. GPC with a Sell rating and a $53 price target on shares after the company reported earnings. In a note to clients, Goldman Sachs writes, "2Q results were strong, but we believe revenue tailwinds driving the automotive and industrial divisions will moderate, gross margin rate progress has the potential to be choppy, and valuation is high. As such, we reiterate our Sell rating, relative to our coverage. Nevertheless, we lift our 12-month target price by $1 to $53, on our slightly higher estimates. We raise estimates to reflect the flow-through of 2Q's revenue beat. FY11 goes to $3.50 from $3.40 (at the high end of new guidance range), while FY12 and FY13 go to $3.70 and $3.90, from $3.60 and $3.80 previously." Shares of GPC gained $1.98 on Friday to close at $57.10, a gain of 3.59%.