AZO Stock Gets A Target Reduction From JPMorgan – But Analyst Believes It’s Good Time To Add To Positions At Current Levels

• JPMorgan attributed AutoZone’s recent 15% decline to lower same-store-sales estimates and tougher inflation comparisons ahead, according to TheFly.
• Truist and Raymond James also lowered their price targets following the results, while maintaining ‘Buy’ and ‘Strong Buy’ ratings, respectively.
• Koyfin data shows 23 of 27 analysts rate AZO ‘Buy’ or ‘Strong Buy’.

AutoZone (AZO) shares remained in focus Monday after JPMorgan lowered its price target to $3,700 from $3,850 while maintaining an ‘Overweight’ rating on the stock, TheFly reported.

AZO shares traded over 0.6% higher at the time of writing on Monday.

Analyst Christopher Horvers said the firm sees an attractive valuation at current share levels as estimates are being “right-sized,” according to the note published by The Fly.

According to The Fly, Horvers said AutoZone shares are down 15% following reductions to same-store sales estimates and a derating tied to tougher inflation comparisons ahead. JPMorgan believes the current levels are a “good time to add” to positions, according to the report published by TheFly.

AutoZone’s Q4 Highlights

AutoZone reported fiscal fourth-quarter net sales of $6.59 billion, up 5.6% year over year. Diluted earnings per share (EPS) increased to $56.05 from $48.71 a year earlier.

AutoZone said sales strengthened over the last eight weeks of the quarter. Total-company same-store sales increased 2.7%, while domestic same-store sales rose 1.6%. On a constant-currency basis, total-company same-store sales increased 1.5%.

AutoZone opened 175 stores during the fourth quarter (Q4), including 97 in the U.S., 68 in Mexico and 10 in Brazil. The additions included 16 new U.S. Mega Hub stores, bringing fiscal 2026 store openings to 374.

The company also repurchased $697.5 million of stock during the quarter and ended fiscal 2026 with $1.6 billion remaining under its current share repurchase authorization.

Analysts Adjust Targets After Q4

Truist lowered its price target to $3,648 from $3,817 while maintaining a ‘Buy’ rating following the Q4 results. According to TheFly, the firm said investors were already prepared for softer domestic comparable sales, while noting that the exit rate improved in both DIY and Commercial during the final four weeks of the quarter.

Raymond James analyst Bobby Griffin lowered his price target to $3,700 from $4,000 while maintaining a ‘Strong Buy’ rating, The Fly reported. Griffin pointed to accelerating sales into the first quarter (Q1) as supporting a more constructive fiscal 2027 setup. The analyst also highlighted 4% like-for-like inflation, Commercial share gains and the maturation of AutoZone’s supply chain and technology investment cycle as potential catalysts.

Other firms that lowered their price targets following the Q4 results included DA Davidson, Guggenheim, Mizuho, Roth Capital, BMO Capital and Barclays, according to TheFly.

According to Koyfin data, 23 of the 27 analysts covering AZO rate the stock ‘Buy’ or ‘Strong Buy’.

Retail View On Stocktwits 

Retail sentiment on Stocktwits stayed 'bullish' on AZO over the past 24 hours, with message volume running 'high.’

AZO shares have dropped nearly 17% year-to-date.

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