AutoZone Inc
AZO: XNYS (USA)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$5,339.00 | Xbvpm | Sqwvdddz |
Solid Start for AutoZone’s Fiscal 2023, Showing Its Emerging Dual-Market Strength; Shares Rich
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.