Goldman Sachs upgrades Autozone on potential tariff benefits

OReilly Automotive

01/04/2025 13:18

** Goldman Sachs upgrades auto parts retailer Autozone AZO.N to "neutral" from "sell", PT at $3,811

** AZO may benefit from higher tariffs, including the 25% auto tariff, by passing on higher prices to customers, says brokerage

** Company has performed well during economic downturns in the past, which can benefit it - Goldman Sachs

    ** Autozone and O'Reilly Automotive ORLY.O can outperform peer Genuine Parts GPC.N due to GPC's poor comparative sales figures over the past 2 years, says brokerage

** Says AZO and ORLY are taking market share from smaller competitors

** Up to last close, AZO shares up 20.3% in the past 12 months

(Reporting by Padmanabhan Ananthan)

((padmanabhan.ananthan@thomsonreuters.com))