UPDATE: Barclays Capital Reiterates on AutoZone Following Strong Performance

In a report published Wednesday, Barclays Capital analyst Alan M. Rifkin reiterated an Overweight rating on AutoZone (NYSE: AZO), and raised the price target from $550.00 to $575.00.

In the report, Barclays Capital noted, “2Q EPS of $5.63 continues long trend of double-digit EPS growth: AutoZone reported fiscal 2Q EPS of $5.63, versus $4.78 LY, or an increase of 17.8% y/y. Management did not provide guidance. Total comps registered 4.3% versus (1.8)% last year. We estimate DIY comped ~2.5% and DIFM comped ~9-10%.

"Total sales increased 7.3% from $1.9 billion to $2.0 billion. Comps benefitted from strong failure spend, particularly in the wake of challenging weather conditions across the U.S. That being said, while failure spend was strong, deferred maintenance spend was challenged, although we believe that poor road conditions in the wake of this year's unseasonably cold winter will ultimately have a positive impact on forcing a higher-than-normal level of overall auto part spend as we move through the latter part of fiscal 2014.”

AutoZone closed on Tuesday at $538.56.