Citi thinks O'Reilly Automotive will buck the broader weakness in the retail market.
The bank upgraded the auto parts retailer to buy from neutral and raised its price target to $1,040 per share from $983.
"We think the recent pullback in the shares presents an attractive buying opportunity for the stable, defensive retail stock," analyst Steven Zaccone wrote in a Thursday note.
"Our target multiple is also at a slight premium to the market share leaders retail basket given the recession-resistant aspect of ORLY's business and consistent margin execution."
"ORLY is the most consistent of the auto parts retailers historically.
Persons:
O'Reilly, Steven Zaccone, Zaccone, — CNBC's Michael Bloom
Organizations:
Citi
Locations:
ORLY