Analyst Upgrades AutoZone To 'Buy,' Shares Climb

NEW YORK (AP) — Shares of AutoZone Inc. climbed on Tuesday as an analyst upgraded the stock to "Buy," saying the auto parts retailer's do-it-yourself business is in better shape than investors think.

Shares gained $5.19, or 3.6 percent, to $149.88 in afternoon trading.

BB&T Capital Markets analyst Anthony F. Cristello upgraded AutoZone from "Hold" in a note to investors. He also set a price target of $165, implying an expected gain of 14 percent over Monday's closing price of $144.69.

Cristello said the results in do-it-yourself sales at rival Advance Auto Parts Inc.'s does not signal a wider business trend. Rather, it was "company specific in nature," he said.

"We don't think any other competitor is as well positioned as AutoZone to service the DIY segment given its systems, targeted demographic marketing ... and overall front-end execution," he said.

Last week, Advance Auto Parts posted a 0.7 percent year-over-year increase in its do-it-yourself business during the second quarter. That prompted at least one analyst to take a sour view of the wider DIY auto parts business and downgrade shares of AutoZone.

Memphis, Tenn.-based AutoZone is scheduled to report fiscal fourth-quarter results on Sept. 21. Shares have traded between $84.66 and $169.98 in the last 52 weeks.