Update shared on 22 Nov 2025
Fair value Increased 0.92%Analysts have raised their price target for Genuine Parts from $144.78 to $146.11. They cite improved trends and a more favorable risk/reward outlook across the company’s automotive and industrial businesses.
Analyst Commentary
Recent street research reflects a shift in sentiment toward Genuine Parts, with analysts noting both opportunities and lingering concerns across its business segments.
Bullish Takeaways- Bullish analysts highlight improved business trends in both automotive and industrial operations. These trends are seen as a catalyst for stronger future performance.
- Valuation is described as more balanced, with less perceived downside risk at current levels.
- Analysts believe the company’s industrial segment could deliver outsized growth and leverage as market conditions in the industrial sector recover.
- Upward price target revisions and a shift from a more negative to a neutral outlook reflect confidence in Genuine Parts’ execution and risk/reward profile.
- Some analysts remain cautious about the timing and predictability of a full industrial recovery, which has yet to materialize.
- While trends are improving, the shift in outlook is measured, with upgrades moving to neutral rather than outright bullish ratings for some.
- There is a suggestion that potential upside is tempered by uncertainty in broader macroeconomic conditions that could impact execution.
What's in the News
- Genuine Parts is considering separating its industrial parts business from its auto parts unit. Options being considered include a potential spinoff. Deliberations are in the early stages and no final decision has been made. (Bloomberg)
- The company recently settled with activist investor Elliott Investment Management and entered into a Cooperation Agreement, which includes adding two new independent directors to its Board. (Key Developments)
- Genuine Parts revised its financial guidance for the full year 2025, increasing expected sales growth but narrowing its range for expected diluted earnings per share. (Key Developments)
Valuation Changes
- Fair Value: Increased slightly from $144.78 to $146.11 per share.
- Discount Rate: Decreased modestly from 7.76% to 7.70%.
- Revenue Growth: Projected annual growth has risen from 3.95% to 4.12%.
- Net Profit Margin: Margins have edged up from 4.93% to 4.94%.
- Future P/E: The forward price-to-earnings ratio has moved up from 18.90x to 19.04x.
Disclaimer
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