Advance Auto Parts downgraded as Roth MKM highlights market share losses
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Advance Auto Parts (NYSE:AAP) stock slipped in premarket trading on Monday as Roth MKM analyst David Bellinger stepped to the sidelines.

Bellinger told clients that strong results from key competitors in recent earnings reports has highlighted execution errors, leaving him unable to recommend the stock. Instead, he advised that AutoZone (AZO) and OâReilly Automotive (ORLY) appear to be âsteadier operatorsâ in the current environment.

âFollowing an impressive Q4 print from OâReilly (ORLY) and outlook for extended comp gains, we can no longer dismiss the serial underperformance of AAP. Market share seems to be unwinding quickly as competitor pricing actions season,â Bellinger wrote on Monday. âWe find it difficult to underwrite a material margin recovery from here.â

Both AutoZone (AZO) and OâReilly Automotive (ORLY) are Buy-rated as compared to a new Neutral rating on Advance Auto Parts (AAP). Bellinger also trimmed his price target on Advance Auto Parts to $140 from a prior $180. Shares of Advance Auto Parts slid about 1% shortly before Mondayâs market open.
Read more on the earnings expectations for the companyâs upcoming Q4 report.