But Advance Auto Parts Stock, J.P. Morgan Says. Here’s Why.

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J.P. Morgan analyst Christopher Horvers upgraded Advance Auto Parts stock to Overweight from Neutral, and lifted his price target to $190 from $183.


Caitlin O’Hara/Bloomberg


Advance Auto Parts

is climbing on Tuesday, thanks to an upgrade. JPMorgan argues that the auto-parts retailer is a buy for a very relatable reason: 2021 has to look better than this year.

Analyst Christopher Horvers upgraded Advance Auto Parts stock (ticker: AAP) to Overweight from Neutral, and lifted his price target to $190 from $183. He writes that Covid-19 adversely affected Advance Auto than

AutoZone

(AZO) and

O’Reilly Automotive

(ORLY), given its concentration of stores in hard-hit areas in the Northeast, with comparable sales trailing those of peers in the spring months. Therefore, it may bounce back more easily as the threat of the pandemic starts to recede.

Of course, we’re not quite there yet, and many people are still working from

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Advance Auto Parts Names Mann + Hummel 2020 Vendor of the Year

Leading automotive aftermarket parts provider recognizes three additional brand partners during its Virtual Vendor Summit

Advance Auto Parts, Inc. (NYSE: AAP), a leading automotive aftermarket parts retailer, presented its 2020 Vendor of the Year awards during the company’s annual Vendor Summit held virtually this year in Raleigh, N.C. During the event, Advance honored a number of its vendors for their partnership and performance.

The 2020 Vendor of the Year award was presented to Mann + Hummel, a global leader and expert in the field of filtration and the maker of Purolator filters. Mann + Hummel, which has been a partner of Advance for more than 35 years, was recognized for its innovative solutions that have helped Advance’s sales and market share growth.

“In this unprecedented year, every one of our vendor partners played a vital role in our ability to meet the needs of our customers,” said Mike Broderick, Executive

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Advance Auto Parts Inc (NYSE:AAP), Amazon.com, Inc. (NASDAQ:AMZN) – BofA: Auto Parts Retailers Have Strong Margins In $300B Market

Bank of America is out with thoughts on the $300 billion aftermarket auto parts and repair market based on survey results.

The Takeaways: Suzuki highlights four large companies in the auto parts market in AutoZone (NYSE: AZO), O’Reilly Automotive (NASDAQ: ORLY), Advance Auto Parts (NYSE: AAP) and Genuine Parts Company (NYSE: GPC).

“The US automotive parts and repair market is large, stable, highly profitable (versus other segments of the auto value chain, and relatively fragmented,” analyst Elizabeth Suzuki wrote in a note.

Auto parts retailers have seen a 13.5% average margin compared to 5.4% for new vehicle manufacturers, 8% for parts manufacturers and 3% for auto dealers.

In the do-it-yourself market, AutoZone leads the way with 14% market share. Advance Auto Parts, O’Reilly and Genuine have market shares of 6%, 9% and 3% respectively. New car dealers make up 4% of the market.

The do-it-for-me market sees new car dealers

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Advance Auto Parts Announces Pricing of Cash Tender Offer for Any and All of Its Outstanding 4.50% Senior Unsecured Notes Due December 1, 2023

RALEIGH, N.C.–(BUSINESS WIRE)–Advance Auto Parts, Inc. (“Advance”) (NYSE: AAP), a leading automotive aftermarket parts provider in North America, announced today that it has priced the previously announced cash tender offer for any and all of its outstanding 4.50% senior unsecured notes due December 1, 2023 (CUSIP No. 00751Y AC0) (the “Notes”), on the terms and subject to the conditions set forth in the Offer to Purchase, dated September 22, 2020 (as it may be amended or supplemented from time to time, the “Offer to Purchase”), and the related Notice of Guaranteed Delivery attached to the Offer to Purchase (the “Notice of Guaranteed Delivery”). The tender offer is referred to herein as the “Offer.” The Offer to Purchase and the Notice of Guaranteed Delivery are referred to herein collectively as the “Offer Documents.”

Certain information regarding the Notes and the pricing for the Offer is set forth in the

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Advance Auto Parts (AAP) Down 3.8% Since Last Earnings Report: Can It Rebound?

A month has gone by since the last earnings report for Advance Auto Parts (AAP). Shares have lost about 3.8% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Advance Auto Parts due for a breakout? Before we dive into how investors and analysts have reacted as of late, let’s take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

Advance Auto Parts’ Q2 Earnings & Sales Rise Y/Y

Advance Auto Parts reported adjusted earnings of $2.92 per share in second-quarter 2020 (ended Jul 11, 2020), up 46% from the prior-year number. The earnings figure also beat the Zacks Consensus Estimate of $1.97.

Advance Auto Parts generated net revenues of $2,501 million, beating the Zacks Consensus Estimate of $2,360 million. The revenue figure also rose

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