Citigroup raises AutoZone's PT, sees margin recovery

Autozone

04/03/2026 12:40

** Citigroup raises price target on AutoZone AZO.N to $4,300 from $4,200; reiterates "buy" rating

** New PT represents 18.2% upside to stock's last close

** Brokerage notes quarterly sales were slightly softer, largely due to temporary store closures caused by severe winter weather

** Says auto‑parts industry is still strong, both for people fixing their own cars and for professional mechanics

** Citigroup says AZO hit peak SG&A (selling, general and administrative) expenses; with SG&A growth set to moderate; brokerage expects EBIT and margin rate recovery in FY27

** AZO reported a fall in second-quarter profit on Tuesday, as inflationary headwinds dented the auto parts retailer's margins

** As of last close, AZO up 7.2% YTD

 (Reporting by Megavarshini G. Somasundaram in Bengaluru)

 ((Megavarshini.SomasundaramGnanasundari@thomsonreuters.com))