Assessing Advance Auto Parts: Insights From 18 Financial Analysts

Advance Auto Parts (NYSE:AAP) has been analyzed by 18 analysts in the last three months, revealing a diverse range of perspectives from bullish to bearish.

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

	Bullish	Somewhat Bullish	Indifferent	Somewhat Bearish	Bearish
Total Ratings	0	0	17	0	1
Last 30D	0	0	1	0	0
1M Ago	0	0	7	0	0
2M Ago	0	0	6	0	0
3M Ago	0	0	3	0	1

In the assessment of 12-month price targets, analysts unveil insights for Advance Auto Parts, presenting an average target of $55.36, a high estimate of $65.00, and a low estimate of $44.00. This current average has increased by 11.14% from the previous average price target of $49.81.

Interpreting Analyst Ratings: A Closer Look

The standing of Advance Auto Parts among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst	Analyst Firm	Action Taken	Rating	Current Price Target	Prior Price Target
Simeon Gutman	Morgan Stanley	Raises	Equal-Weight	$60.00	$55.00
Bill Selesky	Argus Research	Maintains	Hold	$60.52	$60.52
David Bellinger	Mizuho	Raises	Neutral	$54.00	$44.00
Greg Melich	Evercore ISI Group	Raises	In-Line	$60.00	$58.00
Zachary Fadem	Wells Fargo	Raises	Equal-Weight	$50.00	$45.00
Simeon Gutman	Morgan Stanley	Raises	Equal-Weight	$55.00	$48.00
Scott Ciccarelli	Truist Securities	Raises	Hold	$53.00	$51.00
Michael Baker	DA Davidson	Lowers	Neutral	$63.00	$65.00
Michael Lasser	UBS	Raises	Neutral	$65.00	$50.00
Zachary Fadem	Wells Fargo	Raises	Equal-Weight	$45.00	$35.00
Greg Melich	Evercore ISI Group	Raises	In-Line	$58.00	$56.00
Steven Zaccone	Citigroup	Raises	Neutral	$60.00	$49.00
Michael Baker	DA Davidson	Raises	Neutral	$65.00	$47.00
Greg Melich	Evercore ISI Group	Raises	In-Line	$56.00	$52.00
David Bellinger	Mizuho	Raises	Neutral	$44.00	$38.00
Greg Melich	Evercore ISI Group	Raises	In-Line	$52.00	$50.00
Kate McShane	Goldman Sachs	Lowers	Sell	$46.00	$48.00
Greg Melich	Evercore ISI Group	Raises	In-Line	$50.00	$45.00

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Advance Auto Parts. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Advance Auto Parts compared to the broader market.
• Price Targets: Analysts navigate through adjustments in price targets, providing estimates for Advance Auto Parts's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Advance Auto Parts's market standing. Stay informed and make data-driven decisions with our Ratings Table.

Stay up to date on Advance Auto Parts analyst ratings.

About Advance Auto Parts

Advance Auto Parts is a leading auto-parts retailer in North America with more than 4,000 store and branch locations. About half of the firm's sales are geared toward the professional channel, with the remaining sales in the do-it-yourself market. Through its vast store footprint and distribution network, Advance manages thousands of stock-keeping units for various vehicle makes and models. The retailer primarily competes on the basis of inventory availability and service speed, making the operating efficiency of its hub-and-spoke distribution model critical to meeting customer needs.

Unraveling the Financial Story of Advance Auto Parts

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

Revenue Growth: Advance Auto Parts's revenue growth over a period of 3M has faced challenges. As of 30 June, 2025, the company experienced a revenue decline of approximately -7.71%. This indicates a decrease in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Consumer Discretionary sector.

Net Margin: Advance Auto Parts's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of 0.75%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Advance Auto Parts's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of 0.68%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): Advance Auto Parts's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 0.14%, the company may face hurdles in achieving optimal financial returns.

Debt Management: Advance Auto Parts's debt-to-equity ratio is below the industry average at 1.66, reflecting a lower dependency on debt financing and a more conservative financial approach.

Understanding the Relevance of Analyst Ratings

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.