Advance Auto Parts: Evercore ISI Raises PT to $58 from $56, Maintains In-Line

Advance Auto Parts: Evercore ISI Raises PT to $58 from $56, Maintains In-Line

In a significant move, Evercore ISI has raised its price target for Advance Auto Parts (NYSE:AAP) to $58 from the previous $56. The financial firm maintains its In-Line rating on the stock, reflecting a balanced view of the company's prospects. This upward revision comes amidst a broader trend of analysts downgrading the stock due to its recent earnings report and quarterly revenue decline.

Advance Auto Parts reported a quarterly earnings per share (EPS) of $0.22, which exceeded expectations but came with a notable decrease in revenue by 24.2% year-over-year. Despite the earnings beat, the company's financial performance has been a subject of concern among analysts, leading to a consensus "Reduce" rating from 22 brokerages, with two sell ratings, 19 hold ratings, and one buy rating [1].

The latest earnings report highlighted a negative return on equity of 1.76% and a negative net margin of 3.74%, indicating financial strain. The company's debt-to-equity ratio stands at 0.68, and its quick and current ratios are 0.49 and 1.27, respectively, suggesting liquidity concerns.

Institutional investors have shown mixed sentiment towards the stock. AMG National Trust Bank, Franklin Resources Inc., Cerity Partners LLC, Bragg Financial Advisors Inc., and Janney Montgomery Scott LLC have increased their holdings in the company, while others have remained neutral or sold their positions. Hedge funds and institutional investors collectively own 88.75% of the company's stock [1].

Despite the downgrades, Evercore ISI's revised price target reflects a cautious optimism, acknowledging the company's strong dividend payout ratio of 1.7% and its recent dividend announcement. The firm's In-Line rating suggests a neutral stance, indicating that while there are risks associated with the stock, the potential for growth and stability in the automotive parts industry may justify the investment.

References:
[1] https://www.marketbeat.com/instant-alerts/advance-auto-parts-inc-nyseaap-given-consensus-rating-of-reduce-by-brokerages-2025-08-09/
[2] https://www.ainvest.com/news/doordash-price-target-raised-360-evercore-isi-2508/