What the Advance Auto Parts Upgrade Means for Mutual Fund Investors (AAP)
Shauna O'Brien Jan 08, 2015
Inside the Analyst Move
According to analyst Mike Baker: “Historically, the auto parts retailers see the greatest benefit from lower gas prices and as a result, we are increasing our comp and EPS estimates for AAP (and ORLY). We are also increasing estimates due to our belief that AAP should be able to drive higher than expected synergies from its General Parts integration. As a result, we are increasing our price target to $180 from $150 for AAP and raising our rating to Buy from Hold as we look to add exposure to the auto parts group to play the lower gas theme, especially given relatively reasonable valuation.”
Red Hot Sector
Mutual Funds to Watch
|MEIAX||MFS® Value A||2.04%|
|VMCIX||Vanguard Mid Cap||1.95%|
The Bottom Line
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