Oppenheimer Upgrading Autozone

Oppenheimer & Co. is out with a research report on AutoZone, Inc. AZO and is upgrading shares to Outperform. In a note to clients, Oppenheimer writes, "We have for some time maintained an upbeat stance toward Hardlines Retail and prospects for select well-positioned and high-quality stocks within the sector. Broad-based financial market turmoil has recently taken a significant toll upon equity values within Hardlines Retail. Since late July, our Opco Hardlines Coverage is down 15% vs. a decline of 13% in the S&P 500. Macro-related challenges continue to weigh significantly upon the consumer economy. Unemployment remains stubbornly elevated and rising input costs are eating into already tight household budgets. Recent market concerns over a significant retrenchment in hardlines sales trends from here, however, appear overblown. We are lifting ratings to Outperform on: AZO, BBBY and PETM." Shares of AZO closed at $281.89 yesterday.