HALISTER1: O’Reilly Slumps; Online Threat May Limit Upside, Deutsche Says

O’Reilly Slumps; Online Threat May Limit Upside, Deutsche Says

(Bloomberg) -- O’Reilly Automotive drops as much as 2.4%, the most intraday in three weeks, as Deutsche Bank analyst Mike Baker downgraded the stock on concerns about Amazon’s ability take market share in the “Do it Yourself” side of the business.
  • Cuts to hold from buy; PT reduced to $273 from $315
  • AMZN prices ~10%-20% lower than retailers may be an issue for ORLY’s gross margins
  • Also, bigger-picture trends including miles driven and vehicle age could be acting as headwinds
  • Says ORLY trades at above-average valuation, sees less upside as EPS growth may slow
  • ORLY has 21 buys, 6 holds, 1 sell; avg PT $307
  • Reports 1Q earnings Wednesday aft-mkt
  • NOTE: Feb. 7, O’Reilly Auto 1Q EPS View Trails Est.

Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
ORLY US (O'Reilly Automotive Inc)

People
Michael Baker (Deutsche Bank AG)

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