Overview
- Shares rose as much as 8.2% intraday after Northcoast's Aaron Reed raised the stock to buy and set a $55 price target, implying more than 20% upside.
- The rally followed a sharp drop the prior day after a price-target cut, including TD Cowen trimming its target to $46.
- Management's plan calls for closing more than 700 locations, opening in stronger territories, and building larger market hubs to expand same-day delivery for professional customers.
- Despite renewed interest, the company has trailed AutoZone and O'Reilly for over a decade and its multi-year turnaround remains unproven.
- 3M reported a weak auto aftermarket in its earnings commentary, which could foreshadow near-term softness when Advance Auto Parts next reports.