Shares tumbled 35 percent on Wednesday, the largest one-day drop on record. Then the following day, Advance Auto said in a filing with the U.S. Securities and Exchange Commission that it would be unable to file its next Form 10-Q on time after losing “certain accounting personnel.”
“The hits keep coming,” Wells Fargo analyst Zachary Fadem said in a Friday note. He lowered his price target to $70 from $80, the second cut of the week, and maintained his equal weight rating. “Needless to say, the wheels appear to be coming off post-very weak Q1 results.”
Bank of America also exited the bull camp, downgrading Advance Auto to neutral from buy citing faltering turnaround efforts, while Raymond James moved its rating to market perform from a strong buy.
RBC Capital Markets still favors the overall auto parts retail industry. The firm maintains its sector perform but slashed its price target on AAP to $84 from $158.
And, even those that remain bullish on the company have lowered their earnings estimates. Jefferies, one of at least three analysts with buy ratings, significantly reduced its near—term outlook and cut its price target to $84 from $160.
