Advance Auto Parts' (AAP) fiscal Q1 results indicate that its turnaround is gaining traction, but the company needs to show its outperformance is due to consistent execution as industry tailwinds recede, UBS Securities said in a note Thursday.

The company reported another quarter of comparable stores sales growth and an operating margin improvement of over 400 basis points, while taking steps to optimize profitability by reducing reliance on large professional accounts that don't provide a commensurate return on service investment, according to the note.

"For the stock to work in a meaningful way from here, the path will require consistent execution over the span of several quarters," analysts said, adding that the company needs to generate an extra 250 basis points of margin expansion to attain its long-term target even if it achieves the high end of its full-year operating margin guidance.

UBS maintained its neutral rating and adjusted the price target to $65 from $60.

Shares of Advance Auto Parts were down 1% in Friday trading.

Price: 58.03, Change: -0.59, Percent Change: -1.01