AutoZone's Results Clearly Demonstrates Share Gains, Says This Analyst

Stephens analyst Daniel Imbro reiterated an Overweight rating on AutoZone, Inc AZO and a $2,400 price target.
Yesterday, AutoZone announced its Board had approved the repurchase of an additional $2.5 billion of the company's common stock translating into ~6% of the market cap.
Despite YTD's outperformance, he continues to favor AZO as the company's results demonstrate share gains, and the DIFM acceleration warrants multiple expansions above historical averages.
During this period of elevated inflation, he continues to favor the non-discretionary nature of the aftermarket's demand and believes that 1H23 estimates for AZO look beatable.
He expects AZO's investments will continue to fuel DIFM growth above DIY growth, which will weigh on gross margins, seemingly reflected in current expectations.
Additionally, AZO would be an outsized beneficiary if a broader trade-down to DIY picks up during a prolonged economic downturn.
Price Action: AZO shares traded higher by 3.07% at $2,272.75 on the last check Wednesday.

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