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Goldman Sachs has lifted Advance Auto Parts, Inc. (NYSE:AAP) price objective to $48 from $43 while keeping a Neutral rating.
A manufacturing facility floor filled with an array of automotive parts and accessories.
The change comes after the company's Q1 results, which were stronger than originally expected in terms of both revenue and earnings. According to the firm, Advance Auto Parts, Inc. (NYSE:AAP)'s turnaround approach is starting to pay off, as evidenced by the company's impressive quarterly performance.
Goldman observes initial signs that management's attempts to enhance operations are gathering momentum, as stated in the research note. The retail car parts market is still essentially solid, and pricing trends show promise for growth. The company believes that because the industry is defensive, it provides resilience in unpredictable market situations. Goldman's updated outlook, although still cautious, shows more confidence in the company's approach against a steady and potentially improving industry backdrop. Improved investor sentiment linked to operational execution is highlighted by the $5 price target hike.
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