Mizuho cuts Advance Auto Parts stock price target on DIY weakness
Investing.com ·
Mizuho cuts Advance Auto Parts stock price target on DIY weakness
Investing.com - Mizuho lowered its price target on Advance Auto Parts stock (NYSE:AAP) to $50 from $58 while maintaining a Neutral rating on Thursday. The stock currently trades at $46.53, below the new target, though InvestingPro data suggests the company remains undervalued based on its Fair Value analysis. Trading at a P/E ratio of 22.8 with a notably low PEG ratio of 0.19, the stock shows attractive valuation metrics despite operational headwinds.
The firm cited underperforming comparable sales for the auto parts retailer in the third quarter. While inflation remains a positive factor and motor oil is contributing more than initially planned, the do-it-yourself business remains under pressure. An InvestingPro tip notes that 6 analysts have revised their earnings downwards for the upcoming period, reflecting broader concerns about near-term performance.
Quarter-to-date performance started off flat, lapping the easiest part of last year’s fourth quarter. The improvement versus third-quarter levels came from professional comps in the low-single-digit to mid-single-digit percentage range.
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