Zacks Investment Research downgraded shares of Advance Auto Parts Inc. (AAP) from NEUTRAL to UNDERPERFORM on September 05, 2012, with a target price of $64.00.
Advance Auto parts aims to improve its supply chain and vendor terms by pursuing an aggressive store expansion strategy. However, the sluggish economy, volatile gasoline prices and pricing are some of the challenges facing the company. The company's profits fell 8.2% in the second quarter of 2012, missing the Zacks Consensus Estimate by $0.06 per share. The company's revenues also dipped marginally by 1.3% due to lower store sales and lagged the Zacks Consensus Estimate of $1.48 billion. These factors have led us to downgrade our recommendation on the stock from Neutral to Underperform and set a target price of $64.00.
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