AutoZone Inc. "Almost There" (Buy) Lasser

研报英文原文证据摘录

AutoZone Inc. "Almost There" (Buy) Lasser

SG&A dollar growth will remain below 8% over the next several

quarters. The company's efforts to drive productivity and efficiency across the

enterprise should help limit its SG&A growth. If AZO continues to show good

SG&A expense management while sufficiently investing in its growth, we think

this will be well received by the market.

What are the bulls saying on this print?

The bulls believe the stock pullback was a severe reaction to the print. While the bulls

acknowledge that the comp result legitimately missed the buy-side expectations, AZO's

EPS was above what the market was expecting. The bulls believe that AZO's reported

EPS is set to continue from here, especially since the LIFO headwinds are fading. This

should further drive more free cash flow and enable greater share repurchases. Plus,

with the stock trading at a reasonable multiple, the optimists believe AZO's share

repurchases would be even more accretive. This feedback from the bulls suggests AZO

earning $185 in FY'27E.

What are the bears saying on the print?

The bears were loud after the print. They point to transactions remaining under pressure

and fading comp growth ahead. The bears believe that as the benefit of LFL inflation

decreases, AZO's comp growth will further decelerate. Plus, the skeptics question

whether the investments AZO has been making are providing a sufficient return. They

believe these factors will be overhangs on AZO's earnings over the near-term. This

feedback from the bears suggests AZO earning $165 in FY'27E.

Valuation: AZO's risk-reward balance looks favorable at current levels

Our $4,555 price target (unchanged) is ~25x (unchanged) our CY'27 EPS estimate.

AutoZone Inc. 26 May 2026 ab 3