Analyst Upgrade on Genuine Parts (GPC) Follows Planned Business Split

Genuine Parts Co. (NYSE:GPC) is among the 10 most undervalued stocks to buy and hold for 10 years.

On February 24, Raymond James upgraded its rating on Genuine Parts Co. (NYSE:GPC) to Strong Buy from Outperform, with a $145 price target attached. The investment firm said that this adjustment is based on a sum-of-the-parts valuation following the planned separation of the company’s auto and industrial businesses. The analyst also said early 2026 data show a possible inflection point in industrial demand, citing stronger U.S. manufacturing production and rail traffic trends, which are likely to benefit the company.

In its report, Raymond James valued the Motion industrial segment of Genuine Parts Co. (NYSE:GPC) at about 15x forward EBITDA, a discount to direct peer Applied Industrial Technologies, which trades near 17x. The firm also applied a 10x EBITDA multiple to the company’s North America Auto segment, in line with competitor Advance Auto Parts, and an 8x multiple to the International Auto segment. Under those assumptions, the firm calculated a fair value of about $145 per share, including $50 million of stranded costs.

Raymond James expects the separation to be completed by the first quarter of 2027, with investor days for both businesses planned in the second half of 2026.

Genuine Parts Co. (NYSE:GPC) distributes automotive and industrial replacement parts. Its Automotive Parts Group operates across North America, Europe, and Australasia, while the Industrial Parts Group serves customers across North America and Australasia.

While we acknowledge the potential of GPC to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than GPC and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 40 Most Popular Stocks Among Hedge Funds Heading Into 2026 and 12 Best Stocks to Buy and Hold for the Next 2 Years.

Disclosure: None. Follow Insider Monkey on Google News.