AutoZone (AZO) Earns Bullish Endorsement from TD Cowen Despite Tariff Concerns

With a price target of $4,300, TD Cowen analysts reaffirmed their Buy rating on AutoZone Inc. (NYSE:AZO) stock on June 4. The firm’s analysts are confident in AutoZone’s ability to address issues related to tariffs and its reliance on the Chinese market.

The analysts pointed out that AutoZone Inc. (NYSE:AZO) should be able to reduce risks due to its size, negotiating power, technological prowess, and pricing policies. The company is using a similar strategies to offset the effects of tariffs as it did in 2017 and 2018. These include negotiating prices with suppliers, expanding its supply chain beyond China, and methodically passing on any residual expenses to customers are all essential parts of AutoZone’s business plan.

TD Cowen analysts emphasized the break-fix nature of the industry, which generates 85% of AutoZone’s revenue, despite possible constraints on discretionary categories. They expect this non-discretionary demand to lead to low price flexibility, enabling the company to preserve its product margins.

AutoZone Inc. (NYSE:AZO) is the largest retailer in the United States for aftermarket automobile components and accessories.

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Read More: 10 Best Magic Formula Stocks for 2025 and 10 Best Retirement Stocks to Buy According to Hedge Funds

Disclosure: None.