Here is Why Hedge Funds Favor Advance Auto Parts (AAP)

Advance Auto Parts (NYSE:AAP) is one of the best Auto Parts stocks according to Hedge Funds.

On January 21, Aaron Reed from Northcoast Research indicated his optimism around Advance Auto Parts (NYSE:AAP). He upgraded his rating on the stock from Neutral to Buy, and estimated a price target of $55, which yields an upside of over 14%. Reed’s rating is based on his expectations of strong demand trends during 2026, following the ongoing performance enhancements.

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On the flip side, TD Cowen analyst Max Rakhlenko reduced his price target on the stock substantially, from $62 to $46, and reiterated his Hold rating, according to The Fly. The revision was part of the analyst’s target adjustments across his hardlines group coverage.

Back on December 16, Greg Melich of Evercore ISI had reaffirmed his In-Line rating for Advance Auto Parts (NYSE:AAP). In the process, he revised his target price estimate for the stock from $58 to $56. Despite this downward revision, the stock still offers over 16% upside potential to investors from the prevailing level.

Advance Auto Parts (NYSE:AAP) provides automotive aftermarket parts such as batteries, brake pads, chassis parts, clutches, engine parts, exhaust systems, and more. Serving both professional installers and DIY customers with a balanced sales mix, the company operates more than 4,700 Advance Auto Parts and Carquest stores.

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