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Added to YB: 2024-07-29

Pitch date: 2024-07-26

AAP [bullish]

Advance Auto Parts, Inc.

-4.95%

current return

Author Info

Company Info

Advance Auto Parts, Inc. provides automotive aftermarket parts. The company offers batteries and battery accessories; belts and hoses; brakes and brake pads; chassis parts; climate control parts; clutches and drive shafts; engines and engine parts; exhaust systems and parts; hub assemblies; ignition components and wires; radiators and cooling parts; starters and alternators; and steering and alignment parts.

Market Cap

$3.4B

Pitch Price

$58.90

Price Target

360.00 (+543%)

Dividend

1.76%

EV/EBITDA

5.30

P/E

50.21

EV/Sales

0.69

Sector

Specialty Retail

Category

turnaround

Show full summary:
Havana Syndrome and Advance Auto Parts: $AAP

AAP: Auto parts retailer undervalued at 7.5x FCF vs peers 25-30x. New CEO from Home Depot Logistics executing 5-point turnaround: asset sales, cost cuts, new hires, productivity boost, supply chain overhaul. Aging US fleet tailwind. $470M FCF could reach $1-1.4B. Potential 6x upside to $360 in 3yrs (81% IRR) if successful.

Read full article (5 min)