Advance Auto Parts Inc. (AAP) Downgraded by Zacks to NEUTRAL

Zacks Zacks Investment Research downgraded shares of Advance Auto Parts Inc. (AAP) from OUTPERFORM to NEUTRAL on November 24, 2014, with a target price of $153.00.

We are downgrading Advance Auto Parts to Neutral from Outperform based on weakening financial position and price competition. However, the company reported a 27.7% rise in adjusted comparable earnings to $1.89 per share in the third quarter of fiscal 2014, surpassing the Zacks Consensus Estimate of $1.87. Revenues went up 50.6% year over year to $2.29 billion, in line with the Zacks Consensus Estimate. Sales benefited from the General Parts takeover, increase in comparable same-store sales and the addition of new stores over the last 12 months. Advance Auto Parts expects comparable cash earnings per share to be in the range of $7.50-$7.60 for 2014. Store expansion and benefits from acquisitions are some positives.

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