BMO Capital raises AutoZone price target to $4,100, remains bullish

From Yahoo Finance: 2025-05-28 17:00:00

AutoZone, Inc. (NYSE:AZO) receives a bullish outlook from BMO Capital, raising its price target to $4,100 and reiterating an Outperform rating. The stock has outperformed the S&P 500 by 13%, boasting a 32% return over the past year, with a gross profit margin of 53.13% and over $2 billion in free cash flow.

Tristan Thomas-Martin of BMO Capital praises AutoZone’s strong third-quarter fiscal 2025 results, driven by robust international performance and aggressive expansion. Revenue grew 5.4% to $4.5 billion, with same-store sales up 3.2%. However, net income dropped by 6.6% to $608.4 million, and diluted earnings per share decreased by 3.6% to $35.36.

Despite challenges impacting margins, Thomas-Martin remains optimistic about AutoZone’s long-term market potential in the automotive parts industry. The company offers a wide range of automotive replacement parts, accessories, and commercial sales to repair shops and businesses, positioning itself as a leader in the sector.

While AutoZone shows promise as an investment, some AI stocks may offer greater potential returns with limited downside risk. Investors seeking AI opportunities with significant upside potential should explore alternative options beyond AutoZone.



Read more at Yahoo Finance: BMO Capital Hikes AutoZone Price Target to $4,100, Affirms Outperform Stance