Analysts Are Increasing Price Targets of These 5 Stocks

03. AutoZone, Inc. (NYSE:AZO)

Upside Potential: 12.17%

On May 24, BofA analyst Elizabeth Suzuki increased the price target for AutoZone, Inc. (NYSE:AZO) from $1,890 to $2,120. However, the analyst maintains an Underperform rating on the shares. The firm’s earnings estimates are adjusted after AutoZone, Inc. (NYSE:AZO) fiscal Q3 report. Despite a recent decline in the stock, the analyst believes that it is still not attractively priced.

RGA Investment Advisors made the following comment about AutoZone, Inc. (NYSE:AZO) in its Q4 2022 investor letter:

“Below is a chart of Alphabet’s (NASDAQ:GOOG) P/E ratio plotted against AutoZone, Inc. (NYSE:AZO). Any number of examples between large cap tech companies and more mature companies could illustrate this very same point, but we find this specific case most interesting because of its history.

Note that in late 2014/early 2015 these multiples crossed one another. The relative harmony between Alphabet and Autozone lasted for just shy of a year at that time, before Alphabet’s shares surged and Autozone’s shares slumped. This relationship need not matter for markets, though we think there is some signal for investors. Autozone today trades at the highest multiples of its recent history, while Alphabet trades at its lowest. Meanwhile, despite growth estimates dropping considerably at Alphabet and appreciating modestly at Autozone, Alphabet will outgrow Autozone by a wide margin over the next five years…” (Click here to read the full text)