Talha Qureshi
2 min read
In This Article:
On May 23, TD Cowen raised the firm’s price target on Advance Auto Parts, Inc. (NYSE:AAP) from $40 to $53, while maintaining a Hold rating.
The raised target price comes after the company reported better than expected results for first-quarter of fiscal 2025.
A manufacturing facility floor filled with an array of automotive parts and accessories.
Advance Auto Parts, Inc. (NYSE:AAP) is a major automotive company dealing in aftermarket parts. The company serves both professional installers and Do-It-Yourself customers. The company reported a revenue of $2.58 billion for the first quarter, which declined 24.17% year-over-year but surpassed market consensus by $74.22 million. The Non-GAAP EPS came in at negative $0.22, also topping expectations by $0.47.
In addition, Chief Financial Officer, Ryan Grimsland noted that they expect DIFM (Do-It-For-Me) to be one of the key drivers for the business. Therefore, despite the tariff pressure, Advance Auto Parts, Inc. (NYSE:AAP) reaffirmed full-year guidance for the year. It expects net sales to be between $8.4 billion to $8.6 billion, with adjusted EPS in the range of $1.50 and $2.50.
TD Cowen is encouraged by DFIM gaining momentum and also believes the company is delivering better than expected margins. The firm expects Advance Auto Parts, Inc. (NYSE:AAP) to achieve its top and bottom-line targets for the year.
While we acknowledge the potential of AAP as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than AAP and that has 100x upside potential, check out our report about the cheapest AI stock.
READ NEXT: 11 Most Promising New Technology Stocks According to Analysts and 12 Best Growth Stocks to Buy and Hold for the Long Term.
Disclosure: None
