Citi Upgrades Rating, Raises PT To $326 On AZO

Citi has upgraded its rating from Hold to Buy and has raised its price target from $300 to $326 on AutoZone AZO based on the company's attractiveness. Says Citi, in its report, “We are raising AZO to a Buy from Hold on: 1) continued industry momentum through July, 2) well positioned & best-in-class operator in a relatively defensive industry, 3) significant potential for return of shareholder value through repurchases, 4) attractive entry point on recent pull back & valuation backdrop. Risks to our upgrade include still high gas prices and more difficult SSS comparisons (vs. +6.7%, +9.5% and +7.1% in 4Q/1Q/2Q respectively)… Our PT goes to $326 from $300, on 14X (up from 13X) our CY12 EPS estimates.” AZO closed yesterday at $280.10.