AutoZone (NYSE: AZO) Stock Analysis: Guggenheim Price Target Update and Q4 Performance

• Guggenheim analyst Steven Forbes adjusted the price target for AutoZone (NYSE: AZO) to $3,750, indicating a potential upside of 29.55% from its previous trading price of $2,894.73.
• AutoZone reported mixed fourth-quarter results, with sales reaching $6.6 billion (a 5.6% increase) but falling short of expectations, while diluted earnings per share (EPS) surged 15.1% to $56.05, surpassing forecasts.
• Despite the mixed financial results, the automotive retail market reacted positively, with AutoZone's stock climbing 6%, mirroring gains in the broader auto parts sector.

AutoZone (NYSE: AZO) is a major retailer of automotive replacement parts and accessories. The company operates in a competitive market against rivals like Advance Auto Parts (NYSE: AAP) and O'Reilly Automotive (NASDAQ: ORLY). It serves both individual car owners who do their own repairs and professional service centers, facing common consumer-related challenges.

On September 23, 2026, Guggenheim analyst Steven Forbes lowered the price target for AutoZone to $3,750 from a previous target of $4,000. At the time of this update, the stock's price was $2,894.73. This new target implies a potential increase of about 29.55% from its price at that time.

The analyst's update follows a mixed fourth-quarter report where sales grew 5.6% to $6.6 billion but fell short of expectations. However, the company's profit exceeded forecasts, with diluted earnings per share increasing by 15.1% to $56.05. This strong profit helped balance the lower-than-expected sales figures.

Despite the mixed results, the market reacted positively, with AutoZone's stock climbing 6%. As highlighted by 247wallst.com, other auto parts retailers also saw gains, with Advance Auto Parts rising 6% and O'Reilly Automotive gaining 4%. This suggests a broader positive sentiment across the auto parts sector.

For the full fiscal year, AutoZone reported record sales of $20.3 billion, a 7.4% increase. The company also expanded by opening 374 new stores. CEO Phil Daniele stated that the company gained market share in a difficult environment by focusing on customer service and inventory improvements.