Advance Auto Parts "neutral," estimates reduced

05/17/07 - Robert W. Baird

NEW YORK, May 17 (newratings.com) - Analysts at Robert W Baird maintain their "neutral" rating on Advance Auto Parts (AAP), while reducing their estimates for the company. The target price is set to $44.

In a research note published this morning, the analysts mention that the company has reported its 1Q07 EPS in-line with the estimates and the consensus. Advance Auto Parts expects the recent comprehensive strategy review to result in improved profitability, better efficiency and sales growth going forward. Advance Auto Parts’ share price has appreciated recently and the company faces risks associated with higher gas prices, Robert W Baird adds. The EPS estimates for 2007 and 2008 have been reduced from $2.43 to $2.42 and from $2.77 to $2.76, respectively.