Morgan Stanley Cuts Advance Auto Parts (NYSE:AAP) Price Target to $52.00

Advance Auto Parts (NYSE:AAP) had its target price decreased by Morgan Stanley from $65.00 to $52.00 in a research report sent to investors on Friday morning,Benzinga reports. Morgan Stanley currently has an equal weight rating on the stock.

AAP has been the subject of a number of other research reports. UBS Group lowered their target price on Advance Auto Parts from $65.00 to $47.00 and set a “neutral” rating for the company in a report on Friday. Guggenheim reissued a “neutral” rating on shares of Advance Auto Parts in a research note on Friday. DA Davidson reduced their price target on Advance Auto Parts from $58.00 to $48.00 and set a “neutral” rating on the stock in a report on Friday. The Goldman Sachs Group set a $49.00 price objective on Advance Auto Parts in a research note on Friday. Finally, Wells Fargo & Company dropped their price objective on shares of Advance Auto Parts from $60.00 to $50.00 and set an “equal weight” rating for the company in a report on Friday. Two research analysts have rated the stock with a Buy rating, nineteen have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, Advance Auto Parts has a consensus rating of “Hold” and an average price target of $50.80.

Advance Auto Parts Stock Performance

NYSE AAP opened at $42.85 on Friday. The firm’s fifty day moving average price is $56.58 and its two-hundred day moving average price is $55.39. The stock has a market cap of $2.59 billion, a PE ratio of 31.28, a PEG ratio of 0.69 and a beta of 1.03. The company has a debt-to-equity ratio of 1.50, a quick ratio of 0.85 and a current ratio of 1.75. Advance Auto Parts has a fifty-two week low of $37.89 and a fifty-two week high of $65.21.

Advance Auto Parts (NYSE:AAP) last announced its quarterly earnings results on Thursday, August 20th. The company reported $1.03 EPS for the quarter, beating analysts’ consensus estimates of $0.81 by $0.22. Advance Auto Parts had a return on equity of 9.84% and a net margin of 0.97%.The company had revenue of $2 billion during the quarter, compared to analysts’ expectations of $2.04 billion. During the same period in the prior year, the company earned $0.69 EPS. Advance Auto Parts’s revenue was down .5% compared to the same quarter last year. Advance Auto Parts has set its FY 2026 guidance at 2.600-3.300 EPS. On average, equities analysts expect that Advance Auto Parts will post 2.97 EPS for the current fiscal year.

Advance Auto Parts Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, October 23rd. Investors of record on Friday, October 9th will be given a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a yield of 2.3%. The ex-dividend date of this dividend is Friday, October 9th. Advance Auto Parts’s dividend payout ratio (DPR) is currently 72.99%.

Institutional Investors Weigh In On Advance Auto Parts

A number of institutional investors have recently made changes to their positions in AAP. Allworth Financial LP bought a new stake in shares of Advance Auto Parts in the 2nd quarter valued at about $25,000. Caitong International Asset Management Co. Ltd bought a new position in shares of Advance Auto Parts during the third quarter worth about $31,000. State of Wyoming bought a new position in shares of Advance Auto Parts during the second quarter worth about $34,000. AlphaCore Capital LLC lifted its stake in shares of Advance Auto Parts by 53.6% in the fourth quarter. AlphaCore Capital LLC now owns 883 shares of the company’s stock worth $35,000 after acquiring an additional 308 shares during the period. Finally, Hantz Financial Services Inc. lifted its stake in shares of Advance Auto Parts by 184.5% in the fourth quarter. Hantz Financial Services Inc. now owns 919 shares of the company’s stock worth $36,000 after acquiring an additional 596 shares during the period. Institutional investors own 88.70% of the company’s stock.

Trending Headlines about Advance Auto Parts

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

• Positive Sentiment: Adjusted earnings beat expectations. Advance Auto Parts reported second-quarter adjusted EPS of $1.03, above the $0.81 consensus estimate and up from $0.69 a year earlier. The company also raised its FY2026 adjusted EPS guidance to $2.60–$3.30, while maintaining its sales outlook. Advance Auto Parts Analysts Cut Their Forecasts After Q2 Results
• Positive Sentiment: Margins and balance-sheet metrics improved. A $26 million tariff refund helped support quarterly margins, while gross margin expanded to 46.2% from 43.5% a year earlier. Advance also reduced net leverage to 2.1x from 2.4x and repaid approximately $30 million of debt. Advance Auto Parts Rebounds After Tariff Refund Boosts Q2 Margins
• Neutral Sentiment: Analyst targets remain mixed. JPMorgan lowered its target to $55, Morgan Stanley and RBC each moved to $52, and Citigroup cut its target to $45; all maintained neutral or equivalent ratings. These targets imply upside from recent levels, but Goldman Sachs reduced its target to $40 and assigned a Sell rating. Benzinga analyst updates
• Neutral Sentiment: The dividend provides shareholder support. Advance Auto Parts declared a quarterly dividend of $0.25 per share, with payment scheduled for October 23 to shareholders of record on October 9. The dividend yield is approximately 2.4%.
• Negative Sentiment: Sales momentum remains the main concern. Second-quarter revenue of approximately $2.0 billion missed estimates near $2.04 billion, while comparable-store sales declined 0.5%. Weak demand from cost-conscious, lower-income do-it-yourself customers and a volatile spending environment raised concerns about the pace of sales acceleration and required reinvestment. Advance Auto Parts Posts Disappointing Q2 Comparable Sales
• Negative Sentiment: Broad target reductions underscore execution risk. Goldman Sachs’s Sell rating and Bank of America’s reiterated Sell/Underperform view highlight concerns over weak DIY demand and the company’s ability to execute its turnaround, even after the earnings beat. Bank of America Reiterates 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.