Redburn Raises O’Reilly (ORLY) Price Target, Maintains Buy Rating

On June 3, Redburn Atlantic lifted its price target on O’Reilly Automotive, Inc. (NASDAQ:ORLY) to $1,500 from $1,470, maintaining a Buy rating as the firm expresses continued confidence in the company’s earnings trajectory. The adjustment follows a detailed analysis pointing to sustained growth potential in the automotive aftermarket sector.

Redburn Raises O'Reilly (ORLY) Price Target, Maintains Buy Rating

A mechanic working on a car in an auto shop, skillfully replacing the aftermarket parts.

Analysts at Redburn highlight O’Reilly’s consistent execution and scale as core strengths that support the stock’s premium valuation. The firm noted that O’Reilly Automotive, Inc. (NASDAQ:ORLY) operates with meaningful advantages in distribution, customer loyalty, and inventory efficiency—factors that help the company outperform peers during both stable and volatile market conditions. The research underscores potential near-term upside to earnings estimates, driven by steady demand for vehicle maintenance and repair, especially as the average age of vehicles on the road continues to rise. O’Reilly’s strong supplier relationships and disciplined cost controls also position it well to manage margin pressures.

Looking ahead, Redburn forecasts O’Reilly will compound earnings at an annual rate of 11% over the next four years, citing robust store-level productivity and an expanding footprint. This growth outlook supports a bullish stance even at current share levels. As industry trends favor established players with scale and logistics strength, O’Reilly’s operational resilience and focus on high-return investments make it a standout in the sector, according to the firm’s latest report.

While we acknowledge the potential of ORLY as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ORLY and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.