Advance Auto Parts Inc. experienced a price decline of 3.09%, hitting a 20-day low. This drop comes as the broader market showed strength, with the Nasdaq-100 up 0.43% and the S&P 500 up 0.44%.
The decline in Advance Auto Parts' stock is attributed to Wolfe Research downgrading the automotive goods retail industry from 'market overweight' to 'market weight.' This downgrade has led to concerns about pricing pressures and potential negative impacts on comparable-store sales forecasts, which were previously optimistic. Investors are advised to exercise caution as several companies in the sector may face worsening sentiment due to high valuations.
The implications of this downgrade suggest that investors may need to reassess their positions in the automotive retail sector, particularly in light of the potential for declining sales and increased competition. The market's overall strength contrasts with the challenges faced by Advance Auto Parts, highlighting a possible sector rotation.
Wall Street analysts forecast AAP stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AAP is 55.23 USD with a low forecast of 40.00 USD and a high forecast of 65.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
17 Analyst Rating
Wall Street analysts forecast AAP stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AAP is 55.23 USD with a low forecast of 40.00 USD and a high forecast of 65.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
1 Buy
14 Hold
2 Sell
Hold
Current: 48.120
Low
40.00
Averages
55.23
High
65.00
Current: 48.120
Low
40.00
Averages
55.23
High
65.00
Northcoast
Neutral -> Buy
upgrade
$55
2026-01-21
Reason
Northcoast
Price Target
$55
AI Analysis
2026-01-21
upgrade
Neutral -> Buy
Reason
Northcoast upgraded Advance Auto Parts to Buy from Neutral with a $55 price target, citing continued performance improvements and "healthy" demand trends going into 2026.
Northcoast
Aaron Reed
Neutral -> Buy
upgrade
$55
2026-01-21
Reason
Northcoast
Aaron Reed
Price Target
$55
2026-01-21
upgrade
Neutral -> Buy
Reason
Northcoast analyst Aaron Reed upgraded Advance Auto Parts to Buy from Neutral with a $55 price target. The firm cites "healthy" demand trends and continued underlying performance improvements into 2026 for the upgrade, telling investors in a research note that the decision to sell Worldpac and exit the West Coast market, while doubling down on the core retail box store performance, reflects confidence in the company's long-term trajectory and a disciplined strategy.
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TD Cowen
Max Rakhlenko
Hold
downgrade
$62 -> $46
2026-01-20
Reason
TD Cowen
Max Rakhlenko
Price Target
$62 -> $46
2026-01-20
downgrade
Hold
Reason
TD Cowen analyst Max Rakhlenko lowered the firm's price target on Advance Auto Parts to $46 from $62 and keeps a Hold rating on the shares. The firm adjusted targets in the hardlines group. Planet Fitness is TD's top idea, followed by Home Depot and O'Reilly Automotive.
Truist
Scot Ciccarelli
Hold
downgrade
$59 -> $48
2025-12-17
Reason
Truist
Scot Ciccarelli
Price Target
$59 -> $48
2025-12-17
downgrade
Hold
Reason
Truist analyst Scot Ciccarelli lowered the firm's price target on Advance Auto Parts to $48 from $59 and keeps a Hold rating on the shares as part of a broader research note previewing 2026 for Hardlines/Broadlines Consumer names. With some slower consumer trends in the second half of FY25 consumers will remain choiceful in their shopping patterns, with a continued focus on "Value", the analyst tells investors in a research note. For the company, margins will continue to be pressured in the near term due to non-cash LIFO charges and higher SG&A costs associated with accelerating unit growth, the firm added.
About AAP
Advance Auto Parts, Inc. is an automotive aftermarket parts provider in North America, serving both professional installers (professional) and do-it-yourself (DIY) customers, as well as independently owned operators. The Company's stores and branches offer a range selection of brand names, original equipment manufacturer (OEM) and owned brand automotive replacement parts, accessories, batteries and maintenance items for domestic and imported cars, vans, sport utility vehicles and light and heavy-duty trucks. The Company operates approximately 4,788 stores primarily within the United States (U.S.), with additional locations in Canada, Puerto Rico and the U.S. Virgin Islands. The Company also serves approximately 934 independently owned Carquest branded stores across these locations in addition to Mexico and various Caribbean islands. Its stores operate primarily under the Advance Auto Parts and Carquest trade names.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
