AutoZone, O'Reilly downgraded at Oppenheimer on industry dynamics
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Oppenheimer has downgraded AutoZone (NYSE:AZO) and O'Reilly Automotive (NASDAQ:ORLY) to perform from outperform as COVID pandemic tailwinds are subsiding, along with the prospect of EPS and sales upside.
The firm trimmed its price target for the two auto parts store companies to $2600 (~3% upside based on Thursdays close) for AutoZone (AZO) and $930 (~3% upside) for O'Reilly (ORLY).

While analyst Brian Nagel sees Street forecasts for both companies as fair, he doesn't see much chance for either stock's price to go up much.
During the pandemic, AutoZone (AZO) and O'Reilly (ORLY) were able to weather supply chain disruptions better than smaller competitors. That is no longer the case as the competitors are now on better footing, he added.
Despite the current UAW strike, overall, new car production has been improving since the pandemic, leading consumers to lean toward new vehicles, he adds.


More on AutoZone, O'Reilly Automotive, etc.

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AutoZone, Inc. (AZO) Q4 2023 Earnings Call Transcript
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