J.P. Morgan Maintains Neutral Rating On Autozone (AZO)

Analysts at J.P. Morgan JPM released a research report on AutoZone AZO today. The firm has a Neutral rating and $240 price target on the stock. AZO currently trades at around $260 per share. The company will be reporting its quarterly earnings results on December 7th. The analysts wrote, "We are maintaining our first-quarter sales and EPS estimates as industry fundamentals continue to be favorable for the aftermarket retailers. In addition, AutoZone continues its strong execution, with expected double-digit growth in its commercial business from HUB store conversions. We are forecasting EPS of $3.63, which sits ahead of current consensus estimate of $3.39 and believe the Street will come up as we approach the call." On the valuation front, they wrote "While secular tailwinds remain robust and AZO is operating in best-in-class style, we believe that upward revisions are slowing. This, combined with a relatively full valuation, is likely to cap out the stock upside, in our view."