AutoZone Inc AZO shares rallied in early trading on Wednesday, after the company on Tuesday reported its fiscal third-quarter results.

The announcement came amid an exciting earnings season. Here are some key analyst takeaways.

Raymond James On AutoZone

Analyst Bobby Griffin reiterated a Strong Buy rating, while raising the price target from $4,000 to $4,200.

AutoZone reported its fiscal third-quarter earnings short of consensus, Griffin said in a note. He added, however, that the company's "sales momentum is accelerating and strategic investments are beginning to inflect."

Management guided to a cautious margin outlook for the fiscal fourth quarter, the analyst stated. "Commercial (DIFM) continues to accelerate via share gains, DIY is showing early signs of recovery, and the mega hub expansion remains on track to drive broader network productivity," he further wrote.

Truist Securities On AutoZone

Analyst Scot Ciccarelli maintained a Buy rating, while raising the price target from $3,995 to $4,038.

AutoZone posted strong results for the quarter, with the best comp and Commercial sales growth in around two years, Ciccarelli said. The company's Domestic comp of 5.0% surpassed the consensus of 2.6%, he added.

The Commercial segment's sales returned to double-digit growth, while total sales came in at $4.46 billion, beating Truist Securities’ estimates of $4.42 billion, the analyst stated. AutoZone gross margins contracted by 87 basis points (bps) year-on-year to 52.7%, impacted by "higher shrink (not expected to continue in the fourth quarter), the ramping of new DCs and stores (drag on the margin), FX pressures ($27mm EBIT impact), and faster (lower margin) Commercial growth," he further wrote.

Check out other analyst stock ratings.

Guggenheim Securities On AutoZone

Analyst Steven Forbes reaffirmed a Buy rating, while lifting the price target from $3,850 to $4,100.

AutoZone reported mixed operating results for the fiscal third quarter, Forbes said. While net sales grew by 5.4%, adjusted gross margin contracted by 55 bps year-over-year, he added.

"Although certain margin headwinds resulted in a modest EBIT(DA) shortfall relative to our expectations, we expect many of these pressures to cycle out as early as 4Q 2025 — providing improved visibility behind the path back to mid-single digit EBIT growth," the analyst further wrote.

DA Davidson On AutoZone

Analyst Michael Baker reiterated a Buy rating and price target of $4,192.

AutoZone's Domestic comps of 5% came in well above the consensus of 2.4% and represented a meaningful acceleration from the previous quarter's +1.9%, Baker said. Total comps also improved to 3.2%, coming in at 5.4% in constant currencies, better than in the last quarter, he added.

While the company's International comps, up 8.1% in constant currencies, represent a deceleration, they remain strong, the analysts stated. "While overall results were mixed, with much better sales offset by margin weakness, we think the share gains and benefits of long-term investments, while temporarily hurting profits, should win the day for the stock," he further wrote.

AZO Price Action: Shares of AutoZone had risen by 2.71% to $3,786.17 at the time of publication on Wednesday.

Read More:
• AutoZone Set To Gain As Tariffs Push Car Owners To Repair Over New Purchases: Analyst

Photo: Shutterstock