(Updates with the analyst's commentary.)

Morgan Stanley cut its price target on AutoZone (AZO) to $3,605 from $4,020 while keeping its overweight rating.

The brokerage believes AutoZone "is capable of" a "structurally higher comp with profile" and that its fiscal Q3 2026 earnings showed a positive direction.

The automotive parts and accessories retailer opened 14 more mega hubs in the quarter, Morgan Stanley said in its note, adding it believes selling, general and administrative expenses pressure is past its "peak period".

AutoZone has an average rating of overweight and mean price target of $4,039.24, according to analysts polled by FactSet.

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)

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