Goldman Sachs Lowers Price Target On Advance Auto Parts

According to Goldman Sachs, Advance Auto Parts AAP price target is lowered to $70. Goldman Sachs said that AAP's turnaround has been volatile all along, with management constantly balancing the pace of internal change vs. a desire to deliver the numbers. “A less supportive sector environment and the fact that much margin improvement has already been booked make this a tougher balancing act today. Also, EBIT margin expansion associated with cost cuts is likely to garner a lower multiple than expansion associated with gross profit growth. We lower modestly 2011E and 2012E EPS on flow-through of lower sales and less gross margin expansion. We trim 2011 and 2012 EPS by $0.10 each, to $4.60 and $5.15, while 2013 goes to $5.90 from $5.95.” Advance Auto Parts closed yesterday at $63.49.