O'Reilly Automotive is called a recession-resistant stock by Citi
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O'Reilly Automotive (NASDAQ:ORLY) tracked higher in early trading on Thursday after Citi upgraded the auto parts retailer to a Buy rating after having it lined up at Neutral.
Analyst Steve Zaccone and team pointed to the recent pullback in O'Reilly's (ORLY) share price as an attractive buying opportunity for investors on what the firm sees as a stable, defensive retail stock that may be resistant to recessionary pressures.
Notably, O'Reilly (ORLY) has been gaining significant market share in the auto parts industry off what is called solid execution. 
Citi set a price target on AZO of $1,040 to represent 16% upside potential.
âOur target multiple is also at a slight premium to the market share leaders retail basket given the recession-resistant aspect of ORLYâs business and consistent margin execution," noted Zaccone.
Looking ahead, Citi's estimates indicate EPS upside for OâReilly (ORLY) in the second half of 2023 and 2024 in comparison to the consensus marks. 
Shares of O'Reilly Automotive (ORLY) rose 1.11% in premarket trading on Thursday. The company is set to report Q3 earnings on October 25.

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