JPMorgan's Christopher Horvers maintains an Overweight rating on O'Reilly Automotive with a $398 price target and is now included in the firm's "Analyst Focus List."
Weather is a key factor in determining auto parts demand in terms of both "in the moment" (i.e., freezing weather prompts battery failure) and a lagged impact (repairs from salt on roads or corrosion), Horvers said in a research report. The research firm's analysis of weather trends found the following:
- 2019 snowfall was down year-over-year in the northeast and up in north central. Based on a geographical exposure, O'Reilly Automotive is best positioned to take advantage of the 2019 "solid but not as good as 2018" snow trends.
- 2018 summer was "good overall," but current forecasts call for a "relatively cooler" summer, especially in the west where O'Reilly has strong exposure.
- O'Reilly's favorable geographic exposure should help the company regain the "best comp crown" in the group.
Shares of O'Reilly Automotive traded higher by 2.5 percent to $385.89 Monday.
JPMorgan Upgrades O'Reilly Ahead Of Winter's Harsh Driving Conditions
Sell-Side Raise AutoZone Price Targets Following Big Earnings Beat
Photo credit: Michael Barera, from Wikimedia Commons
Latest Ratings for ORLY
|Mar 2019||Evercore ISI Group||Initiates Coverage On||In-Line|
|Mar 2019||Atlantic Equities||Downgrades||Overweight||Neutral|
|Dec 2018||Raymond James||Reiterates||Strong Buy||Strong Buy|
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