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Advance Auto Parts -4% on short-term JPMorgan concerns

|About: Advance Auto Parts, Inc. (AAP)|By: , SA News Editor

JPMorgan lowers Advance Auto Parts (AAP -3.6%) to a Neutral rating from Overweight and scratches the stock off its Analyst Focus List.

"While we believe AAP has the right management team in place with effective long term strategies, key topline drivers heading into 2020 appear to be more incrementally negative (weather, less inflation, slower GDP growth) than positive (car park better) while its DIY business is already on shaky ground," writes analyst Christopher Horvers.

Horvers sees the margin unlock story for AAP at risk of not coming to fruition.

JP's price target goes to $163 from $168 after some downward revisions to earnings estimates. The average sell-side PT on Advance Auto Parts is $173.47.

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