Citigroup raises AutoZone's PT, sees margin recovery

Citigroup raises price target on AutoZone AZO.N to $4,300 from $4,200; reiterates "buy" rating

New PT represents 18.2% upside to stock's last close

Brokerage notes quarterly sales were slightly softer, largely due to temporary store closures caused by severe winter weather

Says auto‑parts industry is still strong, both for people fixing their own cars and for professional mechanics

Citigroup says AZO hit peak SG&A (selling, general and administrative) expenses; with SG&A growth set to moderate; brokerage expects EBIT and margin rate recovery in FY27

AZO reported a fall in second-quarter profit on Tuesday, as inflationary headwinds dented the auto parts retailer's margins

As of last close, AZO up 7.2% YTD