Advance Auto Parts Crushes Earnings, Goldman Sachs Raises Price Target (AAP)

After Advance Auto Parts AAP beat consensus estimates in its most recent quarter, Goldman Sachs raised its price target to $60 from $57. Goldman Sachs maintains a Neutral rating on the stock. According to Goldman's client note, Advance Auto Parts "reported 2Q10 EPS of $1.16 vs. $0.89 in 2Q09 and exceeded our Street-high $1.08 and consensus of $1.03. AAP raised guidance to $3.70- $3.80, reflecting catch-up from 1Q, the 2Q beat, and a bigger buyback than we anticipated." Goldman Sachs analysts note that the recent beat "shows that the firm’s focus on supply chain is gaining enormous traction, with parts availability garnering sales, better buying garnering margins, and more aggressive working capital management generating cash from working capital to buy back stock." Advance Auto Parts, Inc. (Advance) is a specialty retailer of automotive aftermarket parts, accessories, batteries and maintenance items primarily operating within the United States. Shares gained more than 5% today, to close at $54.60.