Raymond James Bullish on Genuine Parts (GPC) Transformation, Sets $145 Price Target

Genuine Parts Company (NYSE:GPC) is included among the 14 Best Affordable Dividend Stocks to Buy According to Analysts.

CNBC reported on February 24 that Raymond James expects a planned business separation to help unlock value for Genuine Parts Company (NYSE:GPC) shares. The firm double upgraded the automotive parts distributor to Strong Buy from Market Perform. Analyst Sam Darkatsh also set a $145 price target, which implies about 25% upside from current levels. He believes the stock’s recent weakness has created a more favorable setup for investors. In his view, the stock “trades well below implied fair value.” The analyst made the following statement:

“GPC is undergoing a strategic transformation via the separation of its automotive (NAPA) and industrial (Motion Industries), which operationally run mostly independently of each other. GPC shares are off ~20% since the 4Q print despite announcing the separation of its Auto and Industrial businesses. We now view the setup as constructively asymmetric based on conservative sum-of-the-parts math.”

Darkatsh also pointed to what he described as a “clear timeline to value creation.” The company expects to complete the separation by the first quarter of 2027. He added that investor days are planned for both businesses in the second half of 2026. These events could help investors better assess each unit and support improved valuation. The analyst noted that sentiment could remain pressured in the near term. Some dividend-focused investors may rotate out, and automobile demand remains soft. Even so, he observed that industrial data have shown signs of improvement in recent periods. He said:

“Near-term sentiment may be pressured by a soft automotive end-market, but we believe investors will better realize GPC’s value as the targeted completion of the separation approaches (1Q27).”

Genuine Parts Company (NYSE:GPC) operates as a global provider of automotive and industrial replacement parts. It also offers value-added services through its two main segments, Automotive Parts Group and Industrial Parts Group.

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