The Goldman Sachs Group Lowers Advance Auto Parts (NYSE:AAP) Price Target to $40.00

Advance Auto Parts (NYSE:AAP) had its price objective cut by The Goldman Sachs Group from $54.00 to $40.00 in a research report issued on Friday,Benzinga reports. The firm currently has a “sell” rating on the stock. The Goldman Sachs Group’s price target would indicate a potential downside of 6.21% from the company’s previous close.

Several other analysts also recently commented on AAP. Royal Bank Of Canada reduced their price objective on Advance Auto Parts from $67.00 to $52.00 and set a “sector perform” rating for the company in a research note on Friday. Weiss Ratings raised Advance Auto Parts from a “sell (d+)” rating to a “hold (c-)” rating in a report on Friday, May 29th. JPMorgan Chase & Co. cut their price target on Advance Auto Parts from $65.00 to $55.00 and set a “neutral” rating for the company in a research note on Friday. BMO Capital Markets reaffirmed a “market perform” rating on shares of Advance Auto Parts in a report on Friday. Finally, Barclays lowered their price objective on shares of Advance Auto Parts from $59.00 to $50.00 and set an “equal weight” rating on the stock in a research report on Friday. Two equities research analysts have rated the stock with a Buy rating, nineteen have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus price target of $51.50.

Advance Auto Parts Stock Up 0.6%

NYSE AAP traded up $0.26 during trading on Friday, reaching $42.65. 2,509,397 shares of the company’s stock were exchanged, compared to its average volume of 1,902,599. The company has a 50 day moving average price of $56.94 and a two-hundred day moving average price of $55.43. The stock has a market cap of $2.58 billion, a P/E ratio of 59.24, a price-to-earnings-growth ratio of 0.93 and a beta of 1.03. Advance Auto Parts has a 1 year low of $37.89 and a 1 year high of $65.21. The company has a debt-to-equity ratio of 1.54, a quick ratio of 0.85 and a current ratio of 1.78.

Advance Auto Parts (NYSE:AAP) last issued its earnings results on Thursday, August 20th. The company reported $1.03 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.81 by $0.22. The business had revenue of $2 billion during the quarter, compared to analysts’ expectations of $2.04 billion. Advance Auto Parts had a net margin of 0.51% and a return on equity of 8.95%. The company’s revenue for the quarter was down .5% on a year-over-year basis. During the same quarter in the prior year, the business posted $0.69 EPS. Advance Auto Parts has set its FY 2026 guidance at 2.600-3.300 EPS. On average, equities research analysts anticipate that Advance Auto Parts will post 2.94 EPS for the current fiscal year.

Institutional Investors Weigh In On Advance Auto Parts

A number of large investors have recently bought and sold shares of the stock. Dimensional Fund Advisors LP lifted its position in shares of Advance Auto Parts by 15.3% during the first quarter. Dimensional Fund Advisors LP now owns 2,127,948 shares of the company’s stock worth $112,243,000 after purchasing an additional 282,591 shares during the last quarter. Bank of America Corp DE raised its holdings in shares of Advance Auto Parts by 4.5% during the first quarter. Bank of America Corp DE now owns 1,056,281 shares of the company’s stock worth $55,719,000 after purchasing an additional 45,696 shares during the period. Private Management Group Inc. acquired a new position in shares of Advance Auto Parts in the 4th quarter valued at about $20,123,000. Royce & Associates LP raised its stake in Advance Auto Parts by 30.5% during the fourth quarter. Royce & Associates LP now owns 1,478,633 shares of the company’s stock worth $58,110,000 after acquiring an additional 345,217 shares during the period. Finally, Fifth Third Bancorp boosted its stake in Advance Auto Parts by 3,521.7% in the first quarter. Fifth Third Bancorp now owns 51,827 shares of the company’s stock valued at $2,734,000 after acquiring an additional 50,396 shares during the period. Institutional investors and hedge funds own 88.70% of the company’s stock.

Advance Auto Parts News Roundup

Here are the key news stories impacting Advance Auto Parts this week:

• Positive Sentiment: Second-quarter adjusted EPS was $1.03, well above the $0.81 consensus estimate and up from $0.69 a year earlier. Gross margin improved to 46.2% from 43.5%, operating income increased substantially, and net leverage fell to 2.1x from 2.4x in the prior quarter. Advance Auto Parts Reports Second Quarter 2026 Results
• Positive Sentiment: A $26 million tariff refund provided an additional boost to second-quarter margins, while the company expanded its product catalog by thousands of stock-keeping units. Advance also raised its FY2026 adjusted EPS guidance to $2.60–$3.30 and continues to pay a quarterly dividend of $0.25 per share. Tariff Refund and Product Catalog Expansion
• Neutral Sentiment: Analysts remain divided on the turnaround. JPMorgan, Morgan Stanley, RBC and DA Davidson all reduced their price targets to $48–$55 but retained neutral, equal-weight or sector-perform ratings. These targets still imply upside from current levels, but the cuts signal reduced confidence in near-term execution. Analysts Cut Forecasts After Q2 Results
• Negative Sentiment: Revenue was approximately $2.0 billion, below the roughly $2.04 billion consensus, while comparable-store sales fell 0.5% year over year. Weak DIY demand and constrained consumer spending—potentially worsened by high gasoline prices—raised concerns about volatile demand and the sustainability of sales growth. Q2 Weak DIY Demand
• Negative Sentiment: Bank of America analyst Robert Ohmes reiterated a Sell rating with a $48 price target, citing DIY weakness and execution risks. The cluster of target reductions has reinforced the bearish reaction to the revenue miss, even though profitability and cash flow improved. Bank of America Sell Rating

Advance Auto Parts Company Profile

Advance Auto Parts, Inc (NYSE: AAP) is a leading distributor of automotive aftermarket parts, accessories, and maintenance items. The company operates a network of stores and distribution centers across North America, serving both do-it-yourself (DIY) customers and professional service providers. Advance Auto Parts focuses on offering a comprehensive selection of replacement parts, batteries, engine components, and performance products for cars and light trucks.

The company’s product portfolio includes engine oils and lubricants, cooling system components, brake and suspension parts, filters, belts, hoses, and diagnostic tools.