PRTS: Higher Profit Margins And Leadership Transition Will Support Future Upside

Analysts have modestly raised their price target on CarParts.com, citing slightly improved profit margin expectations and a higher projected earnings multiple, even as they adopt a more cautious outlook on revenue growth and overall valuation.

What's in the News

• CarParts.com appointed Mark DiSiena as Interim Chief Financial Officer under a consulting agreement with Everest Advisors, effective November 12, 2025. He brings extensive public company finance and operations experience to the role (Key Developments).
• The company entered into a Consulting Services Agreement with Everest Advisors LLC on November 11, 2025. This formalizes the interim CFO arrangement while it evaluates longer term leadership needs in the finance function (Key Developments).
• CarParts.com accepted the resignation of Chief Financial Officer Ryan Lockwood, effective November 21, 2025, after he chose to pursue another professional opportunity. The company stated there were no disagreements over operations, policies, or practices (Key Developments).
• The Board of Directors and senior finance team will collectively oversee financial operations during the transition period while the company conducts a search for a permanent CFO (Key Developments).

Valuation Changes

• Fair Value Estimate was trimmed slightly, reflecting a modestly lower intrinsic value assessment despite stable profitability expectations.
• The Discount Rate was raised meaningfully from roughly 10.6 percent to 12.5 percent, signaling a higher perceived risk profile or required return for the stock.
• The Revenue Growth Outlook was reduced significantly from an expected low single digit percentage increase to a projected mid single digit percentage decline, highlighting a more cautious top line scenario.
• The Net Profit Margin was nudged higher from about 4.7 percent to approximately 4.9 percent, suggesting modest efficiency gains or cost discipline even under softer revenue assumptions.
• The Future P/E Multiple increased notably from just over 2.1x to roughly 3.3x, indicating a higher valuation being applied to anticipated earnings despite the more conservative growth outlook.