AutoZone Earns an Upgrade at UBS
<p>UBS analysts upgraded <a href='https://financialmodelingprep.com/financial-summary/AZO'>AutoZone (NYSE:AZO)</a> stock from Neutral to Buy and raised their price target from $2,800 to $2,900, noting that the current valuation presents a compelling purchasing opportunity. The analysts argued that the market undervalues the company's commercial potential, with increased price competition fears and perceived dimming prospects having led to multiple compression. </p>
<p>The analysts suggested that as AutoZone proves its capability to manage these risks, a rally in its shares is likely. They forecasted a resurgence in the company's DIFM growth and a steady DIY growth against the unstable macroeconomic backdrop, ultimately prompting a return to a premium valuation multiple of 19x, implying approximately 30% upside potential to the current price.</p>

NYSE:AZO