NEW YORK (TheStreet) -- Advance Auto Parts (AAP) shares closed Thursday's trading session down by 2.11% to $160.34, after analysts at Barclays earlier today began coverage of the stock with an "underweight" rating and a $130 price target.
So far, the company has been constructive in making a turnaround, analysts said.
However, it appears that this will take longer than expected given "years of underinvestment and no leadership," the firm noted.
Despite this bearish outlook, one of the best growth stories in U.S. retail is auto parts, The Financial Times reports.
Based in Roanoke, VA, Advance Auto Parts engages in the automotive replacement parts, accessories, batteries, and maintenance items for domestic and imported cars, vans, sport utility vehicles, and light and heavy duty trucks.
Separately, TheStreet Ratings currently has a "Buy" rating on the stock with a letter grade of B.
The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, solid stock price performance, largely solid financial position with reasonable debt levels by most measures, expanding profit margins and good cash flow from operations. We feel its strengths outweigh the fact that the company has had sub par growth in net income.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles' author.
You can view the full analysis from the report here: AAP