Barclays reaffirms its 'Overweight' recommendation on AutoZone, while lowering its price target from $3,100 to $3,024, judging the automotive parts and accessories distributor to be 'close to a crossroads' following its quarterly publication.
AutoZone has once again demonstrated its unique ability to manage EPS effectively in all different scenarios, but the debate surrounding the sustainability of these levers is heating up, due to the absence of a clear path to sales improvement", notes the broker.
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AutoZone, Inc. specializes in distributing automotive spare parts and accessories. The group offers compressors, batteries, carburetors, clutches, des rotors, des motors, fuel pumps, etc. Net sales break down by activity as follows:
- retail and professional distribution (98.2%): sale of spare parts primarily to garages and service stations;
- other (1.8%): sales of diagnostic and maintenance software (name Alldata), and an e-commerce division.
At the end of August 2023, AutoZone, Inc. had a network of 7,140 stores located in the United States and Puerto Rico (6,300), Mexico (740) and Brazil (100).
AUTOZONE, INC. 
