Evercore's Sector Check Points to a Modest Target Cut for Advance Auto Parts (AAP)

Advance Auto Parts, Inc. (NYSE:AAP) is included among the 11 Best Low Priced Dividend Stocks to Buy According to Analysts.

On December 10, Evercore ISI reduced the firm’s price target on Advance Auto Parts, Inc. (NYSE:AAP) to $58 from $60 and maintained an In Line rating. The update came as part of the firm’s broader coverage of the sector.

Advance Auto Parts, Inc. (NYSE:AAP) recorded its best quarter in over two years, fueled by 3% comparable sales growth across its Pro and DIY channels, as well as a 370 basis point YoY increase in adjusted operating margin to 4.4%. The company expects approximately 200 basis points of margin expansion for FY25.

Advance Auto Parts, Inc. (NYSE:AAP) is also rolling out a new assortment framework across its 50 biggest markets, which together make up about 70% of its sales. The company plans the opening of 14 market hubs this year, including 10 conversions and 4 greenfield locations. These openings would take the total to 33 locations by the end of the year. In addition, the company reshaped its debt structure by raising nearly $2 billion in cash to enhance its liquidity.

Advance Auto Parts, Inc. (NYSE:AAP) is an American provider of automotive aftermarket parts, offering services to professional installers and DIY customers.

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