Deutsche Bank Reiterates Buy Rating on O’ Reilly Auto (ORLY)

Deutsche Bank is out with a research report this morning, where it reiterates its Buy rating on O’ Reilly Automotive Inc. ORLY; it has a $61.00 price target on the stock. The DB analysts cited the company’s recent analysts day, which was held to discuss what has been accomplished at CSK, and what remains to be done, and overall opportunities longer-term. Overall, the analysts came away believing that significant opportunities remain for ORLY to continue to growth once the initial pop flattens out. These include industry consolidation on the west coast. Management also reaffirmed guidance for FY 2010 at the analyst day of $2.75 to $2.85 per share on comps of 4% to 6%. As for valuation, the analysts remarked, “We maintain our estimates and $61 PT. Our $61 PT is based on 18x our revised FY11 earnings. This compares to our group average target multiple of 16x, with the premium due to an above average growth rate of 19%.”