Sterne Agee Initiates Coverage On AutoZone

On Friday, analysts at Sterne Agee Initiated coverage on shares of AutoZone, Inc. (NYSE: AZO) with an Underperform rating and $550 price target.

Ali Faghri stated, "In the near term, we believe the company will have a difficult time maintaining financial returns given substantial commercial investments."

Other reasons for the Underperform rating are:

• DIY (do it yourself) tailwinds diminishing.
• Secular headwinds; consumers are shifting from DIY to DIFM (do it for me).
• Commercial growth slowing.
• Free cash flow drivers fading.
• Limited Acquisition opportunities.

Shares of AutoZone closed Thursday at $573.72.