Advance Auto Parts (NYSE:AAP – Get Free Report) had its price target dropped by Morgan Stanley from $65.00 to $52.00 in a research report issued to clients and investors on Friday,Benzinga reports. The firm presently has an “equal weight” rating on the stock. Morgan Stanley’s target price indicates a potential upside of 21.27% from the company’s current price.
Several other brokerages have also commented on AAP. Citigroup lowered their price objective on shares of Advance Auto Parts from $60.00 to $57.00 and set a “neutral” rating for the company in a report on Thursday, August 13th. Guggenheim reiterated a “neutral” rating on shares of Advance Auto Parts in a report on Friday. Barclays set a $50.00 target price on Advance Auto Parts in a report on Friday. TD Cowen lowered their target price on Advance Auto Parts from $61.00 to $45.00 and set a “hold” rating for the company in a research note on Thursday. Finally, Royal Bank Of Canada lowered their target price on Advance Auto Parts from $67.00 to $52.00 and set a “sector perform” rating for the company in a research note on Friday. Two analysts have rated the stock with a Buy rating, eighteen have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, Advance Auto Parts presently has a consensus rating of “Hold” and a consensus price target of $53.68.
Check Out Our Latest Analysis on AAP
Advance Auto Parts Trading Up 1.2%
Advance Auto Parts (NYSE:AAP – Get Free Report) last posted its earnings results on Thursday, August 20th. The company reported $1.03 EPS for the quarter, topping the consensus estimate of $0.81 by $0.22. The firm had revenue of $2 billion during the quarter, compared to analysts’ expectations of $2.04 billion. Advance Auto Parts had a net margin of 0.51% and a return on equity of 8.95%. The company’s quarterly revenue was down .5% compared to the same quarter last year. During the same period last year, the company posted $0.69 EPS. Advance Auto Parts has set its FY 2026 guidance at 2.600-3.300 EPS. On average, analysts anticipate that Advance Auto Parts will post 2.94 earnings per share for the current fiscal year.
Institutional Inflows and Outflows
A number of large investors have recently added to or reduced their stakes in AAP. Allworth Financial LP bought a new stake in Advance Auto Parts in the second quarter worth $25,000. Caitong International Asset Management Co. Ltd bought a new position in Advance Auto Parts in the 3rd quarter worth about $31,000. State of Wyoming bought a new position in Advance Auto Parts in the 2nd quarter worth about $34,000. AlphaCore Capital LLC grew its position in Advance Auto Parts by 53.6% during the 4th quarter. AlphaCore Capital LLC now owns 883 shares of the company’s stock valued at $35,000 after purchasing an additional 308 shares during the last quarter. Finally, Hantz Financial Services Inc. grew its position in Advance Auto Parts by 184.5% during the 4th quarter. Hantz Financial Services Inc. now owns 919 shares of the company’s stock valued at $36,000 after purchasing an additional 596 shares during the last quarter. Hedge funds and other institutional investors own 88.70% of the company’s stock.
Trending Headlines about Advance Auto Parts
Here are the key news stories impacting Advance Auto Parts this week:
- Positive Sentiment: Quarterly earnings exceeded expectations. Advance Auto Parts reported adjusted earnings of $1.03 per share, above the $0.81 consensus estimate and up from $0.69 a year earlier. Gross margin improved to 46.2% from 43.5%, while operating income increased substantially. Advance Auto Parts Reports Second Quarter 2026 Results
- Positive Sentiment: A $26 million tariff refund boosted margins. The refund provided a temporary benefit to second-quarter profitability, and the company also expanded its product catalog with thousands of additional SKUs. Tariff Refund and Product Expansion
- Positive Sentiment: Balance-sheet progress and the dividend offer support. Advance reduced debt by approximately $30 million during the quarter, lowered net leverage to 2.1 times from 2.4 times, and declared a quarterly dividend of $0.25 per share, representing an annualized yield of approximately 2.4%.
- Neutral Sentiment: Full-year guidance was maintained or modestly raised on earnings. Fiscal 2026 adjusted EPS guidance is $2.60 to $3.30, compared with the $2.94 analyst consensus, while revenue guidance of approximately $8.49 billion to $8.57 billion remains near expectations. Revenue Miss and Muted Outlook
- Negative Sentiment: Revenue and comparable-store sales missed expectations. Quarterly revenue was about $2.0 billion versus roughly $2.04 billion expected, declined 0.5% year over year, and comparable-store sales fell 0.5%. Weak do-it-yourself demand and constrained consumer spending raised concerns about underlying sales momentum. Weak DIY Demand
- Negative Sentiment: Analysts lowered their expectations. RBC cut its price target to $52 from $67 and assigned a “sector perform” rating, while DA Davidson reduced its target to $48 from $58 and rated the stock “neutral.” Bank of America reiterated a Sell rating with a $48 target, citing DIY weakness and execution risks.
About Advance Auto Parts
Advance Auto Parts, Inc (NYSE: AAP) is a leading distributor of automotive aftermarket parts, accessories, and maintenance items. The company operates a network of stores and distribution centers across North America, serving both do-it-yourself (DIY) customers and professional service providers. Advance Auto Parts focuses on offering a comprehensive selection of replacement parts, batteries, engine components, and performance products for cars and light trucks.
The company’s product portfolio includes engine oils and lubricants, cooling system components, brake and suspension parts, filters, belts, hoses, and diagnostic tools.
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