AutoZone's Growth Story Intact, Analysts Highlight Commercial Strength and Expansion Plans

Several analysts boosted the price forecast for AutoZone, Inc. AZO following second-quarter results reported on Tuesday.

The company reported second-quarter GAAP earnings per share of $28.29, missing the street view of $29.39 and sales of $3.952 billion (+2.4% year over year) missed the analyst consensus estimate of $3.981 billion.

Raymond James analyst Bobby Griffin maintained a Strong Buy rating and raised the price target from $3,850 to $4,000.

The analyst writes that they remain optimistic about the company’s strong commercial performance, resilient gross margins, and long-term growth prospects despite lowering the FY25 EPS estimate to $153.10 (from $154.85).

The analyst says that the International growth, with ~100 new stores, remains a bright spot, despite near-term foreign exchange headwinds.

The Mega-Hub expansion remains key, with plans for 300 locations to boost both domestic retail (DIY) and DIFM availability, per the analyst.  

Griffin writes that DIFM sales are rising, supported by better inventory placement and faster delivery.

While DIY traffic is under pressure, AZO is poised for a rebound as macro conditions improve, with potential upside from inflation and tariff effects, adds the analyst.

Guggenheim analyst Steven Forbes retained a Buy rating and raised the price forecast from $3,750 to $3,850.

The analyst writes that the results support his thesis of continued sequential improvement, highlighted by stronger DIY and DIFM comps.

While higher-than-expected investments in field labor led to a slight EBIT(DA) shortfall, the analyst anticipates these investments will mature in the next 12 months, setting up for stronger comp growth in the second half of 2025.

Other price forecast revisions include:

• DA Davidson analyst Michael Baker maintained a Neutral rating and boosted the price forecast from $3,350 to $3,500.
• Evercore ISI Group analyst Greg Melich kept an Outperform rating and upped the price forecast from $3,525 to $3,700.
• JP Morgan analyst Christopher Horvers reaffirmed an Overweight and increased the price forecast from $3,775 to $3,830.
• BMO Capital analyst Tristan Thomas-Martin retained an Outperform and raised the price forecast from $3,700 to $3,850.
• Morgan Stanley analyst Simeon Gutman maintained an Overweight and upped the price forecast from $3,490 to $3,750.
• Mizuho analyst David Bellinger kept an Outperform and boosted the price forecast from $3,600 to $3,740.

Investors can gain exposure to the stock via Exchange Listed Funds Trust Bancreek U.S. Large Cap ETF BCUS and VanEck Retail ETF RTH.

Price Action: AZO shares are up 2.36% at $3,555.56 at the last check Wednesday.

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