AutoZone Inc

AZO: XNYS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$1,587.00	Ysyv	Flfbfjwrrj

AutoZone Cruises Through Volatile Winter Months, Amid Labor and Freight Headwinds; Shares Rich

Erin Lash , Ari Felhandler

Mar 1, 2023

We don’t expect to materially alter our $1,950 per share fair value estimate for narrow-moat AutoZone after the firm posted solid second-quarter results. We’re encouraged investments behind its commercial expansion initiatives persist, despite industrywide cost pressures, particularly in labor and freight. Even after a low-single-digit downdraft, shares trade at a premium; we recommend investors seek a more attractive entry point.

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