AutoZone Inc

AZO: XNYS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$6,381.00	Nbjm	Qxjtxgwyhs

Solid Start for AutoZone’s Fiscal 2023, Showing Its Emerging Dual-Market Strength; Shares Rich

Zain Akbari

Dec 6, 2022

We do not plan to alter our $1,870 per share valuation of narrow-moat AutoZone significantly after the firm posted solid first-quarter results (period ended Nov. 19), spurred by continued expansion of its commercial unit. Our long-term forecast still assumes mid-single-digit top-line annual growth rates and roughly 20% operating margins, and we suggest investors await a more attractive entry point as we believe the current trading price leaves little room for error.

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