O'Reilly Automotive's analyst price target has increased from approximately $107.55 to $108.78 per share. Analysts point to resilient consumer dynamics, ongoing supply chain improvements, and margin stability as drivers of incremental upside.
Analyst Commentary
Recent research coverage of O'Reilly Automotive has generally been positive, highlighting the company's strong performance and growth prospects. However, analysts also note several factors that warrant attention going forward.
Bullish Takeaways- Bullish analysts are raising price targets, reflecting growing confidence in O'Reilly's underlying earnings power and continued margin stability.
- Several note that the company's differentiated supply chain and best-in-class delivery network are driving market share gains and improving parts coverage. This supports long-term growth potential.
- Healthy consumer dynamics, combined with pricing power and ongoing same-SKU inflation, are expected to sustain momentum in same-store sales.
- The company is seen as benefiting from broader industry trends. These include parts deferral leading to increased breakage and demand from "do-it-for-me" operators.
- Bearish analysts express some caution about the potential impact of higher product and SG&A costs on operating leverage and overall profitability.
- There are concerns that as same-SKU inflation persists, it could be met with customer pushback and potential volume elasticity, which may partially offset pricing gains.
- A more conservative stance is noted for the remainder of the year due to cost pressures and the need for ongoing reinvestment. This could affect near-term valuation upside.
What's in the News
- O'Reilly Automotive has completed a new tranche of its longstanding share buyback program by repurchasing 9,404,000 shares between April 1, 2025 and August 8, 2025, totaling $857.19 million. The company has now cumulatively bought back 106,157,000 shares for $26.67 billion under the program, which was first announced in 2011 (Key Developments).
- The company has issued updated guidance for the 2025 fiscal year. It is projecting total revenue between $17.5 billion and $17.8 billion, with diluted earnings per share expected to range from $2.85 to $2.95 (Key Developments).
Valuation Changes
- The Fair Value Estimate has increased slightly from $107.55 to $108.78 per share.
- The Discount Rate rose marginally from 8.31% to 8.35%.
- The Revenue Growth projection edged up slightly from 6.23% to 6.23%.
- The Net Profit Margin estimate declined modestly from 14.54% to 14.54%.
- The Future P/E Ratio increased from 36.53x to 37.01x.
Disclaimer
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