Advance Auto Parts "neutral," target price raised

11/01/07 - Robert W. Baird

NEW YORK, November 1 (newratings.com) - Analysts at Robert W Baird maintain their "neutral" rating on Advance Auto Parts Inc (AAP), while raising their estimates for the company. The target price has been raised from $38 to $39.

In a research note published this morning, the analysts mention that the company has posted its 3Q EPS ahead of the estimates and the consensus on account of share buybacks and lower-than-expected tax rates. Advance Auto Parts’ comps were ahead of the estimates and the guidance, the analysts say. The company has issued its EPS guidance for 4Q at $0.36-0.40, in-line with the consensus. The EPS estimates for 2007 and 2008 have been raised from $2.31 to $2.35 and from $2.60 to $2.64, respectively.