Advance Auto Parts faces analyst downgrades after Q3 results By Investing.com
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ROANOKÉ – Advanced Auto Parts Inc. (NYSE:) experienced a turbulent response from analysts after releasing its third quarter results. On Wednesday, the company reported a loss per share of $0.82, falling short of its expected profit of $1.44 per share. Despite this deficit, the auto parts supplier managed to exceed expected net sales, reaching $2.7 billion versus forecasts of $2.68 billion.
The mixed financial results led to varied analyst ratings, with some maintaining a neutral stance while others opted for more drastic revisions. Notably, Bank of America Securities on Thursday downgraded AAP’s rating from Sell to Hold, significantly reducing the price target to $43 from the previous $60. The adjustment coincided with a roughly 5% drop in AAP’s share price during Thursday’s trading session.
Wells Fargo analysts acknowledged the company’s improving sales and cost-cutting efforts, but expressed concern about shrinking margins and uncertainties related to divestitures, as well as the structural challenges facing AAP. faced in the market.
Meanwhile, other financial institutions like The Goldman Sachs Group Inc (NYSE:)., Wedbush and JPMorgan Chase & Co. (NYSE:) maintained a neutral rating on shares of Advance Auto Parts on Thursday, reflecting cautious optimism amid the company’s current challenges.
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