Oppenheimer sees bumpy road for AutoZone and O'Reilly Automotive

|About: AutoZone, Inc (AZO)|By:, SA News Editor

Oppenheimer turns cautious on AutoZone (AZO +1%) and O’Reilly Automotive (ORLY -0.3%), lowering both auto retailers to Perform from Outperform on worries over negative money flows.

"We are stepping back from our now longstanding positive recommendations on AutoZone and O’Reilly Auto upon concerns that the stocks which, we believe, to a certain extent, have benefitted as investors have sought counter-cyclical safety, amid escalating worries over a potential marked macro slowdown, could become sources of funds for a rotation into more cyclically-focused names, as economic indicators potentially re-strengthen, consistent with our now more procyclical call on the broader space," writes analyst Brian Nagel.

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