BofA Raises Advance Auto Parts (AAP) Price Target to $39 Amid Turnaround Progress

On Thursday, BofA Securities analyst Robert Ohmes increased the price target on Advance Auto Parts Inc. (NYSE:AAP) to $39 from $33, while maintaining an Underperform rating on the shares.

This adjustment comes as BofA observes initial progress from the company’s strategic initiatives, which led to a raised 2025 EPS view of $2.00, up from $1.70. BofA anticipates sequential improvement in comparable store sales and margin.

A manufacturing facility floor filled with an array of automotive parts and accessories.

The company’s comparable store sales saw a slight decrease of 0.6% in FQ1 2025, which was better than the consensus estimate of a 2% decline and BofA’s forecast. This improvement in Q1 comparable store sales was particularly evident in the latter half of the quarter, attributed to reduced weather volatility and the normalization of tax refunds.

However, the Underperform rating also captures the ongoing uncertainty regarding the timing of returns on strategic investment spending, coupled with concerns that consumer uncertainty could pressure Advance Auto Parts Inc.’s (NYSE:AAP) sales and margin rates in 2025 and beyond.

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Disclosure: None. This article is originally published at Insider Monkey.