O’Reilly Automotive dropped from ‘conviction buy’ list at Goldman Sachs
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After a stronger than expected earnings result that sent shares soaring into the end of the week, Goldman Sachs sees more limited upside to OâReilly Automotive (NASDAQ:ORLY) stock.

The bankâs analysts applauded the earnings results offered earlier in the week and especially the margin expansion amid elevated inflation. Further, surging comparable sales helped assuage concerns about the consumerâs appetite for DIY repairs. 

Yet, as shares have surged over 30% in the past year, bookended by a double-digit gain during earnings week, Goldman Sachs tempered its bullishness on the name.

âWe are removing ORLY from the GS America's Conviction List as we see limited catalysts to drive upside in the near term, despite the company's relatively consistent, nondiscretionary, and needs-based demand and best-in-class execution,â the analysis stated on Friday. âSince we added ORLY to the Americas Conviction List on March 18, 2020, the shares have returned 177% vs the S&P500 up 59%.â

While the stock remains a âBuyâ rated name for the analysts, the stark run has lessened their conviction that quite as much upside remains ahead. Shares of OâReilly Automotive (ORLY) rose 2.98% in the waning hours of Fridayâs trading.
Read why many analysts conversely increased bullishness on the stock.