Advance Auto Parts (NYSE:AAP) Price Target Lowered to $45.00 at Citigroup

Advance Auto Parts (NYSE:AAP) had its price target reduced by stock analysts at Citigroup from $57.00 to $45.00 in a report issued on Friday,Benzinga reports. The firm currently has a “neutral” rating on the stock. Citigroup’s price target indicates a potential upside of 5.02% from the company’s current price.

AAP has been the subject of a number of other research reports. TD Cowen lowered their price target on Advance Auto Parts from $61.00 to $45.00 and set a “hold” rating for the company in a report on Thursday. Roth Capital set a $48.00 target price on Advance Auto Parts in a research report on Friday. Evercore set a $65.00 target price on Advance Auto Parts in a research note on Tuesday, August 4th. DA Davidson dropped their target price on shares of Advance Auto Parts from $58.00 to $48.00 and set a “neutral” rating for the company in a report on Friday. Finally, Mizuho raised their price target on shares of Advance Auto Parts from $54.00 to $58.00 and gave the company a “neutral” rating in a research note on Tuesday, May 26th. Two research analysts have rated the stock with a Buy rating, nineteen have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus price target of $50.80.

Advance Auto Parts Price Performance

Shares of NYSE AAP traded up $0.46 during trading hours on Friday, hitting $42.85. 4,533,744 shares of the stock were exchanged, compared to its average volume of 1,909,895. The company’s fifty day simple moving average is $56.94 and its two-hundred day simple moving average is $55.43. The company has a market cap of $2.59 billion, a PE ratio of 59.51, a price-to-earnings-growth ratio of 0.93 and a beta of 1.03. 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 has a 1-year low of $37.89 and a 1-year high of $65.21.

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

Institutional Trading of Advance Auto Parts

Hedge funds have recently made changes to their positions in the company. BlackRock Inc. bought a new position in Advance Auto Parts in the 2nd quarter valued at approximately $581,909,000. Price T Rowe Associates Inc. MD grew its holdings in Advance Auto Parts by 18.9% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 7,474,546 shares of the company’s stock worth $293,751,000 after acquiring an additional 1,190,094 shares during the last quarter. Pzena Investment Management LLC acquired a new position in Advance Auto Parts in the 2nd quarter valued at approximately $273,115,000. Federated Hermes Inc. increased its position in Advance Auto Parts by 4.4% in the 4th quarter. Federated Hermes Inc. now owns 2,811,675 shares of the company’s stock valued at $110,499,000 after acquiring an additional 117,648 shares during the period. Finally, State Street Corp raised its stake in shares of Advance Auto Parts by 3.9% during the fourth quarter. State Street Corp now owns 2,499,981 shares of the company’s stock valued at $98,249,000 after acquiring an additional 92,861 shares during the last quarter. 88.70% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting Advance Auto Parts

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%, while net leverage declined to 2.1x from 2.4x. Advance Auto Parts rebounds after tariff refund and margin improvement
• Positive Sentiment: Advance raised its FY2026 adjusted EPS guidance to $2.60-$3.30, while maintaining revenue guidance of approximately $8.485 billion-$8.575 billion. The company also repaid roughly $30 million of debt principal during the quarter. Advance Auto Parts reports second-quarter 2026 results
• Positive Sentiment: Some analysts view the selloff as a potential turnaround opportunity, citing better margins, cash flow, debt reduction, expanded product selection and continued institutional interest. Advance Auto Parts turnaround analysis
• Neutral Sentiment: Advance declared a quarterly dividend of $0.25 per share, payable October 23 to shareholders of record October 9. The dividend provides income support but is unlikely to resolve the company’s operating concerns.
• Negative Sentiment: Revenue of about $2.00 billion missed the roughly $2.04 billion consensus, while comparable-store sales declined 0.5%. Weak do-it-yourself demand and constrained spending among lower-income customers raised concerns about near-term sales acceleration. Advance Auto Parts disappointing second-quarter comparable sales
• Negative Sentiment: Goldman Sachs cut its price target from $54 to $40 and reiterated a sell rating. JPMorgan, Morgan Stanley, RBC and DA Davidson also lowered targets, generally retaining neutral or market-perform ratings. Analysts cut Advance Auto Parts forecasts
• Negative Sentiment: The margin improvement was partly helped by a $26 million tariff refund, creating concern that some of the quarterly benefit may not be recurring. Investors are therefore focusing more on underlying demand than on the EPS beat.

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.