Truist analyst Scot Ciccarelli downgraded Advance Auto Parts to Hold from Buy with a price target of $147, down from $228. The analyst remains bullish on the auto parts retail industry but says Advance still hasn’t been able to show the improvement in growth that many investors have expected. While the downgrade “is clearly late,” the company continues to lose market share, especially in commercial, Ciccarelli tells investors in a research note. In addition, Advance Auto is looking to make price investments to improve its competitive positioning, even though raising prices has been one of its biggest gross margin drivers in recent quarters, says the analyst. As a result, Ciccarelli believes there is more risk to the outlook than upside, even after today’s 16% selloff.
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