Advance Auto Parts faces analyst downgrades after Q3 results
Investing.com
Published Nov 16, 2023 02:09PM ET
Updated Nov 16, 2023 03:21PM ET
ROANOKE - Advance Auto Parts Inc. (NYSE:AAP) has experienced a turbulent response from analysts following the release of its third-quarter earnings. On Wednesday, the company reported a loss per share of $0.82, which failed to meet the anticipated earnings of $1.44 per share. Despite this shortfall, the automotive parts provider did manage to surpass expected net sales, reaching $2.7 billion against projections of $2.68 billion.
The mixed financial results have led to varied analyst ratings, with some maintaining a neutral stance while others have opted for more drastic revisions. Notably, Bank of America Securities downgraded AAP's rating to Sell from Hold on Thursday, significantly reducing the price target to $43 from the previous $60. This adjustment coincided with a roughly 5% decline in AAP's stock price during Thursday's trading session.
Wells Fargo analysts acknowledged the company's improved sales and cost-reduction efforts but expressed concern over decreasing margins and uncertainties tied to divestitures, as well as structural challenges that AAP faces in the market.
Meanwhile, other financial institutions like The Goldman Sachs Group Inc (NYSE:GS)., Wedbush, and JPMorgan Chase & Co. (NYSE:JPM) maintained a neutral rating on Advance Auto Parts' stock on Thursday, reflecting a cautious optimism amidst the company's current challenges.
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Written By: Investing.com
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