Goldman Sachs Raises AutoZone Price Target (AZO)

In a research report released by Goldman Sachs GS today, the firm reiterated their Neutral rating on shares of AutoZone AZO, but gave the stock a big price target boost, from $160 to $198. Yesterday before the opening bell, AZO reported EPS of $4.12 compared to Wall Street consensus of $3.59. Goldman's price target is based on 12x P/E and 8x EV/EBITDA using 2011 estimates Goldman said that they are reiterating their Neutral rating as a result of a number of offsetting negative and positive factors. These include, 1) the company's strong and experienced management team; 2) its best-in-class financial metrics; 3) its mature growth profile; 4) the current peak of the autoparts retail cycle; 5) and a full valuation. During the current trading session, AZO has lost 1.43% to $191.96.