Latest news with #RobertOhmes
Yahoo
26-05-2025
- Automotive
- Yahoo
BofA Raises Advance Auto Parts (AAP) Price Target to $39 Amid Turnaround Progress
On Thursday, BofA Securities analyst Robert Ohmes increased the price target on Advance Auto Parts Inc. (NYSE:AAP) to $39 from $33, while maintaining an Underperform rating on the shares. This adjustment comes as BofA observes initial progress from the company's strategic initiatives, which led to a raised 2025 EPS view of $2.00, up from $1.70. BofA anticipates sequential improvement in comparable store sales and margin. A manufacturing facility floor filled with an array of automotive parts and accessories. The company's comparable store sales saw a slight decrease of 0.6% in FQ1 2025, which was better than the consensus estimate of a 2% decline and BofA's forecast. This improvement in Q1 comparable store sales was particularly evident in the latter half of the quarter, attributed to reduced weather volatility and the normalization of tax refunds. However, the Underperform rating also captures the ongoing uncertainty regarding the timing of returns on strategic investment spending, coupled with concerns that consumer uncertainty could pressure Advance Auto Parts Inc.'s (NYSE:AAP) sales and margin rates in 2025 and beyond. While we acknowledge the potential of AAP to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than AAP and that has 100x upside potential, check out our report about the cheapest AI stock. READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
25-05-2025
- Automotive
- Yahoo
BofA Raises Advance Auto Parts (AAP) Price Target to $39 Amid Turnaround Progress
On Thursday, BofA Securities analyst Robert Ohmes increased the price target on Advance Auto Parts Inc. (NYSE:AAP) to $39 from $33, while maintaining an Underperform rating on the shares. This adjustment comes as BofA observes initial progress from the company's strategic initiatives, which led to a raised 2025 EPS view of $2.00, up from $1.70. BofA anticipates sequential improvement in comparable store sales and margin. A manufacturing facility floor filled with an array of automotive parts and accessories. The company's comparable store sales saw a slight decrease of 0.6% in FQ1 2025, which was better than the consensus estimate of a 2% decline and BofA's forecast. This improvement in Q1 comparable store sales was particularly evident in the latter half of the quarter, attributed to reduced weather volatility and the normalization of tax refunds. However, the Underperform rating also captures the ongoing uncertainty regarding the timing of returns on strategic investment spending, coupled with concerns that consumer uncertainty could pressure Advance Auto Parts Inc.'s (NYSE:AAP) sales and margin rates in 2025 and beyond. While we acknowledge the potential of AAP to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than AAP and that has 100x upside potential, check out our report about the cheapest AI stock. READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
25-05-2025
- Automotive
- Yahoo
BofA Raises Advance Auto Parts (AAP) Price Target to $39 Amid Turnaround Progress
On Thursday, BofA Securities analyst Robert Ohmes increased the price target on Advance Auto Parts Inc. (NYSE:AAP) to $39 from $33, while maintaining an Underperform rating on the shares. This adjustment comes as BofA observes initial progress from the company's strategic initiatives, which led to a raised 2025 EPS view of $2.00, up from $1.70. BofA anticipates sequential improvement in comparable store sales and margin. A manufacturing facility floor filled with an array of automotive parts and accessories. The company's comparable store sales saw a slight decrease of 0.6% in FQ1 2025, which was better than the consensus estimate of a 2% decline and BofA's forecast. This improvement in Q1 comparable store sales was particularly evident in the latter half of the quarter, attributed to reduced weather volatility and the normalization of tax refunds. However, the Underperform rating also captures the ongoing uncertainty regarding the timing of returns on strategic investment spending, coupled with concerns that consumer uncertainty could pressure Advance Auto Parts Inc.'s (NYSE:AAP) sales and margin rates in 2025 and beyond. While we acknowledge the potential of AAP to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than AAP and that has 100x upside potential, check out our report about the cheapest AI stock. READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNBC
25-05-2025
- Automotive
- CNBC
An all-weather stock for this volatile market and economy that even thrived during the financial crisis
We're adding an auto-parts stock with a history of resiliency and a current business that could benefit from tariffs to our All-Weather stock list . The goal of the All-Weather list is to use our CNBC Pro resources — top Wall Street analyst research, stock screening tools of the Pros — to identify stocks that can thrive in any type of market or economy. We launched the list in February as we grew more concerned about the bull market. President Donald Trump reignited market turmoil on Friday and gave investors reason again to seek out these types of durable investments. Let's review how the list is doing so far this year: (Values are accurate as of May 23 1:00 pm ET) A stock market rebound from the turmoil in April, bringing the S & P 500 back almost into the green for the year, has overall hurt the performance of the list. These are stocks for a tumultuous market and economy and will probably do best if the S & P 500 starts to struggle again. Nonetheless, there are plenty of winners in the group with Netflix the best among them, a stock we chose because it has become America's affordable entertainment option of choice. Waste Management, with its resilient revenue line, is also a winner and got an upgrade on Friday from JPMorgan. The worst performer, albeit not by that much, is the durable dividend stock exchange-traded fund. I think in normal rough markets that fund would be doing much better, but rising yields are making dividend stocks less attractive. Why buy a dividend stock when a 10-year Treasury will give you 4.5%? Typically, rates fall during rough stock market periods and dividend stocks become a safe haven, but that hasn't been the case this year. New addition: AutoZone AutoZone (AZO) was upgraded by Bank of America to buy from hold on Wednesday and the firm raised its price target to $4,800 from $3,900. That would represent a gain of about 25% from current levels. AutoZone is a consistent stock winner gaining every year since the pandemic and Bank of America believes that consistency will continue this year even with a cash-strapped consumer, a slowing economy and higher tariff rates raising the cost of imported auto parts. On the tariffs specifically, Bank of America sees that as a potential tailwind even as it raises costs for AutoZone. "The auto aftermarket could benefit from lower new car sales and higher used car pricing, as consumers may hold onto and repair existing vehicles," wrote analyst Robert Ohmes in the Monday note. "We think consumers will be more willing to pay the extra cost to fix their existing vehicles than purchasing new vehicles, especially when the auto tariffs could mean a $3,285 increase on average for US-assembled vehicles and higher for imported vehicles." AZO YTD mountain Autozone, YTD But what Ohmes found about AutoZone's trading history is what really caught our eye. He pointed out that the stock, along with competitor O'Reilly Automotive, were up more than 100% versus the S & P 500 during 2008 to 2009. "If unemployment rises and new car sales fall, these trends will drive people into new behavior," wrote Ohmes. Do-it-yourself "could feel a stronger tailwind as consumers realize they can save labor cost if they perform a job on their own." AutoZone is well liked by most of Wall Street with 23 buy ratings and zero sell calls, according to CNBC Pro's analyst tool.
CNBC
23-05-2025
- Business
- CNBC
Bank of America raises this dollar store's price target ahead of earnings
Bank of America sees room for Dollar General to run as earnings near. Analyst Robert Ohmes lifted his price target by $15 to $115, suggesting shares can jump 14.3% above Thursday's close. That marks a new high for price targets on the discount retailer among analysts on Wall Street, according to LSEG. "With the stock at a discount to historical levels & peers, we believe competitive & expense risks are fully reflected in the stock price," Ohmes wrote to clients in a note. "Increasing visibility on strategic initiatives and share gains from competitor store closures provide a favorable setup for comp & profitability improvement into 2025, particularly in 2H." Ohmes also reiterated his buy rating. That makes him an outlier on the Street, with the majority of analysts surveyed by LSEG have a hold rating. He sees $1.40 in adjusted earnings per share and 1% growth in comparable store sales. Ohmes also said the bank has observed accelerating sales data in the first quarter despite flat estimates — which points to potential for upside. Dollar General is expected to report earnings on June 3. Additionally, the analyst said he has confidence that the Tennessee-based company's "back to basics" strategy is working. While he said bears may point to Walmart's outperformance, Ohmes said Dollar General's price gaps compared with competitors and expanding digital presence can provide tailwinds. Store closures from competitors can also give the company an edge, he said. The stock has rallied more than 32% this year, on track for its first positive year in three.
