Goldman Sachs Maintains Neutral on AutoZone

Goldman Sachs is out with its report today on AutoZone AZO, maintaining Neutral. In a note to clients, Goldman Sachs writes, "Better retail sales momentum drove the earnings beat vs. GS and consensus. We continue to expect retail same-store sales to slow on higher gas and food prices. Our estimates and price target are under review pending the company's conference call. We would note that the combination of decelerating sales, high margins, and a full EV/EBITDA multiple is not a recipe for outperformance. In the short run, we expect a bounce given the sell-off on AAP's numbers last week." At the time of posting, shares of AZO were trading pre-market at $289, up 4.42% from Monday's close.