Room to Accelerate

Research evidence excerpt

Room to Accelerate

Idea

July 23, 2026 10:27 PM GMT

Morgan Stanley & Co. LLCMO'Reilly Automotive Inc | North America Simeon Gutman, CFA

Equity Analyst

Room to Accelerate Simeon.Gutman@morganstanley.comPedro Gil, CFA +1 212 761-3920

Pedro.Gil@morganstanley.com +1 212 761-2022

Stock not pricing in a beat-and-raise following recent pullback in Zachary Abraham

shares, creating an intriguing near-term setup, in our view. Research Associate

Zach.Abraham@morganstanley.com +1 212 761-5977

Expecting a slight Q2 comp beat, in-line EPS, and raised comp Skylar Tennant

guidance, which likely results in modest upside to EPS outlook. ResearchSkylar.Tennant1@morganstanley.comAssociate +1 212 761-9963

OW, PT $112.

O'Reilly Automotive Inc (ORLY.O, ORLY US)

The near-term setup for the ORLY stock is favorable in the context of our Hardline/Broadline/Food Retail | United States of America

Overweight rating. We think the stock is attractive from a near-term perspective: Stock Rating Overweight

Industry View In-Line

we believe there is a high probability ORLY raises FY26 guidance, supported by 1H Shr price, close (Jul 22, 2026) $86.53

outperformance; the recent overhang on shares from GPC acquisition speculation is Price target $112.00

Mkt cap, curr (mm) $73,231

fading (GPC denied the potential acquisition on its most recent earnings call); and 52-Week Range $108.72-82.59

compounding earnings growth is positioned to continue. Longer-term, we like ORLY Fiscal Year Ending 12/25 12/26e 12/27e 12/28e

for its differentiated distribution network, which should drive long-term share gains EPS ($)** 2.97 3.30 3.72 4.19

and expanding DIFM penetration, underpinning low double digit EPS growth. P/E 30.8 26.2 23.3 20.7

Div yld (%) 0.0 0.0 0.0 0.0

ModelWare EPS ($) 2.97 3.30 3.72 4.19