Bank of America Upgrades AutoZone Inc. (AZO) to Buy Amid Strong Industry Tailwinds

Pointing to indicators of sustained growth in both the consumer-driven DIY segment and the company’s professional business operations, Bank of America has revised its stance on AutoZone Inc. (NYSE:AZO) on May 21, 2025, upgrading the stock from Neutral to Buy and elevating its price target from $3,900 to $4,800.

A technician in a mechanic’s uniform replacing an A/C compressor, signifying the company’s automotive replacement parts business.

AutoZone (NYSE:AZO) is the largest retailer of automotive parts and accessories in the U.S. Headquartered in Tennessee, the company has operations across the globe, with over 7,140 stores and a strong online presence.

Bank of America Securities stock analyst Robert Ohmes has forecasted the third-quarter earnings per share at $38.15, which exceeds the market consensus of $36.80. The domestic comparable sales growth has further been estimated at 2%. Bank of America has leveraged the internal transaction data, including aggregated credit and debit card trends through May 9, when developing this optimistic outlook, as it revealed consistency in consumer spending on aftermarket auto parts.

With respect to AutoZone (NYSE:AZO), Bank of America noted sales acceleration in March that suggests heightened demand potentially linked to seasonal factors like tax refunds. Further pointing to the company, Bank of America made the following statement:

“AZO continues to invest in initiatives as it sees opportunities to gain share on both sides of the business and could gain disproportionate share from AAP store closures given its store proximity”.

This new rating from Bank of America matches CNN’s consensus Buy rating from 29 analysts, although standing above their 1-year price target of $3,950 for AutoZone (NYSE:AZO).

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