PBY Posts Inline Results for Q3

Analysts at Argus maintain their "buy" rating on Pep Boys - Manny, Moe & Jack (NYSE: PBY)(FREE stock trend analysis), while reducing their estimates for the company. The target price for PBY is set to $12.

PBY has reported its 3Q09 results inline with the estimates and the consensus. Pep Boys - Manny, Moe & Jack has indicated that spending on non-essential items remains weak. The company’s revenue growth would accelerate going forward, given the ongoing improvement in vehicle-miles driven, the analysts believe.

Argus expects PBY to benefit from favorable industry trends, although it is yet to achieve success in its new hub-and-spoke model. PBY has the opportunity to become the leader in the national low-cost aftermarket segment. Argus has reduced its EPS estimate for FY09 from $0.36 to $0.34.