AZO November Results to be Ahead of the Consensus

Analysts at Goldman Sachs maintain their “neutral” rating on AutoZone Inc (NYSE: AZO). The target price for AZO is set to $155.

According to Goldman Sachs, AZO’s November quarter EPS would be ahead of the consensus, driven by lower interest expenses, higher EBIT margins and more share repurchases. The analysts expect AutoZone’s November quarter EPS to be $2.78, as compared to the consensus of $2.66. The company is gaining market share in DIY and enjoying robust growth in the AAP and GPC segments.

Goldman Sachs expects the performance of AZO’s stock to be better than that of other auto retail stocks following the results. AutoZone would continue to repurchase shares, leading to significant EPS accretion. Goldman Sachs expresses its concern, however, regarding AZO’s same-store sales momentum, which is weaker than that of the broader retail group.