AutoZone (AZO) is a major retailer of automotive parts and accessories in the US.The company recently released strong financial results for Q3 2015. Quarterly revenue rose by 6.5% y-o-y to USD 2.49 bn. Strong financial results were driven both by organic growth (LFL sales were up 2.3% y-o-y) and the acquisition of Interamerican Motor Corporation, one of the largest US suppliers of parts for imported cars, last year. Operating profit increased by 7.3% y-o-y to USD 514 mn, while operating margin climbed 1 bp to 20.6%. Adjusted EPS rose 13.1% y-o-y to USD 9.57, outpacing forecasts by 0.5% The company opened 18 new stores and now operates a network of 5,476 (5,279 last year).The company generates a sizeable cash flow, which allows it to buy back shares. AutoZone spent USD 512 mn for this purpose over the quarter. The company still has USD 778 mn left for buyback and intends to allocate that amount further down the roadWe believe that the trend toward growing demand for spare parts will continue due to recovery of the global economy, which along with purchase of high-quality assets will improve financial performance of AutoZone. These factors, coupled with the buyback program, will boost the company’s share price in the mid-term. We raised our mid-term fundamental valuation of AutoZone (AZO) shares to USD 780. We assign a Buy recommendation to the name in the mid-term. The short-term technical target is USD 760.