JPMorgan’s Christopher Horvers believes Advance Auto Parts, Inc. represents “the best turnaround story in one of the best sectors in retail.”
Horvers maintains an Overweight rating on the company, while raising the price target from $169 to $196 and adding the company to JPMorgan’s focus list.
The Turnaround Is Starting
The company’s new CEO, Tom Greco, is in the process putting together a “culture-changing” management team, with improved customer focus and execution as its top priorities.
The analyst believes 2017 will largely be a year when Advance Auto Parts reverses its bad decisions, while “early supply chain/technology initiatives take shape.”
“In addition, management will change/simplify the metrics employees are measured on with strong ties to compensation,” Horvers mentioned.