Advance Auto Parts (NYSE:AAP) Stock Price Expected to Rise, Royal Bank Of Canada Analyst Says

Advance Auto Parts (NYSE:AAP) had its price objective raised by analysts at Royal Bank Of Canada from $57.00 to $63.00 in a report released on Tuesday, MarketBeat.com reports. The firm presently has a “sector perform” rating on the stock. Royal Bank Of Canada’s price target suggests a potential upside of 12.58% from the company’s previous close.

A number of other brokerages also recently issued reports on AAP. Northcoast Research upgraded shares of Advance Auto Parts from a “neutral” rating to a “buy” rating and set a $55.00 price target for the company in a report on Wednesday, January 21st. Morgan Stanley dropped their target price on shares of Advance Auto Parts from $55.00 to $45.00 and set an “equal weight” rating for the company in a report on Thursday, January 15th. Citigroup raised Advance Auto Parts from a “hold” rating to a “buy” rating in a research note on Wednesday, January 21st. Roth Mkm reaffirmed a “neutral” rating and issued a $55.00 price objective (up from $50.00) on shares of Advance Auto Parts in a research note on Monday, October 27th. Finally, Cfra raised Advance Auto Parts to a “hold” rating in a report on Thursday, October 30th. Three equities research analysts have rated the stock with a Buy rating, seventeen have assigned a Hold rating and three have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average target price of $52.93.

Advance Auto Parts Stock Performance

NYSE AAP opened at $55.96 on Tuesday. The stock has a market capitalization of $3.36 billion, a price-to-earnings ratio of 76.66, a PEG ratio of 0.80 and a beta of 1.14. The business’s 50 day moving average is $46.36 and its two-hundred day moving average is $52.40. Advance Auto Parts has a 12-month low of $28.89 and a 12-month high of $70.00. The company has a current ratio of 1.75, a quick ratio of 0.87 and a debt-to-equity ratio of 1.55.

Advance Auto Parts (NYSE:AAP) last posted its quarterly earnings results on Friday, February 13th. The company reported $0.86 earnings per share for the quarter, beating analysts’ consensus estimates of $0.41 by $0.45. The firm had revenue of $1.97 billion for the quarter, compared to the consensus estimate of $1.95 billion. Advance Auto Parts had a return on equity of 6.23% and a net margin of 0.51%.The company’s revenue for the quarter was down 1.2% compared to the same quarter last year. During the same period in the previous year, the business earned ($10.16) earnings per share. Advance Auto Parts has set its FY 2026 guidance at 2.400-3.10 EPS. Research analysts expect that Advance Auto Parts will post -0.46 EPS for the current year.

Institutional Trading of Advance Auto Parts

Several institutional investors and hedge funds have recently made changes to their positions in AAP. Price T Rowe Associates Inc. MD raised its stake in Advance Auto Parts by 18.9% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 7,474,546 shares of the company’s stock valued at $293,751,000 after purchasing an additional 1,190,094 shares during the last quarter. Federated Hermes Inc. raised its position in shares of Advance Auto Parts by 4.4% in the fourth quarter. Federated Hermes Inc. now owns 2,811,675 shares of the company’s stock valued at $110,499,000 after buying an additional 117,648 shares during the last quarter. State Street Corp raised its position in shares of Advance Auto Parts by 3.9% in the fourth quarter. State Street Corp now owns 2,499,981 shares of the company’s stock valued at $98,249,000 after buying an additional 92,861 shares during the last quarter. American Century Companies Inc. lifted its stake in shares of Advance Auto Parts by 559.0% during the third quarter. American Century Companies Inc. now owns 1,519,591 shares of the company’s stock valued at $93,303,000 after buying an additional 1,288,986 shares during the period. Finally, Royce & Associates LP lifted its stake in shares of Advance Auto Parts by 30.5% during the 4th quarter. Royce & Associates LP now owns 1,478,633 shares of the company’s stock worth $58,110,000 after purchasing an additional 345,217 shares during the period. 88.70% of the stock is currently owned by hedge funds and other institutional investors.

Advance Auto Parts News Summary

Here are the key news stories impacting Advance Auto Parts this week:

• Positive Sentiment: Q4 results beat expectations — AAP reported better-than-expected Q4 earnings and revenue (EPS and sales topped consensus), and management set FY2026 guidance (EPS range). That beat prompted analysts to raise forecasts, supporting upside potential. Advance Auto Parts Analysts Raise Their Forecasts After Better-Than-Expected Q4 Earnings
• Positive Sentiment: Several firms lifted price targets after the quarter — Royal Bank of Canada raised its PT to $63 (sector perform) and Truist raised its PT to $57 while keeping a hold/neutral view; those raises signal some analyst conviction in the recovery. RBC Adjusts Price Target on Advance Auto Parts to $63
• Neutral Sentiment: Morgan Stanley reiterated a hold rating — the firm is sticking with a neutral view, which suggests limited near-term upside from their perspective. Morgan Stanley Sticks to Their Hold Rating for Advance Auto Parts (AAP)
• Neutral Sentiment: RBC Capital (press coverage) is still labeling AAP a hold despite adjusting targets — mixed messaging from the same/related houses can muddy investor conviction. RBC Capital Remains a Hold on Advance Auto Parts (AAP)
• Negative Sentiment: DA Davidson reaffirmed a neutral (“neutral”) rating with a $47 price target — this implies meaningful downside from recent levels and highlights divergent analyst views. DA Davidson Reaffirms Neutral on Advance Auto Parts
• Negative Sentiment: Technical/valuation and flow considerations: the stock’s P/E is elevated, trading volume was below average today, and several firms retain neutral/hold stances — those factors can limit rally momentum even after an earnings beat. Advance Auto Parts Trading and Valuation Snapshot

Advance Auto Parts Company Profile

Advance Auto Parts, Inc (NYSE: AAP) is a leading distributor of automotive aftermarket parts, accessories, and maintenance items. The company operates a network of stores and distribution centers across North America, serving both do-it-yourself (DIY) customers and professional service providers. Advance Auto Parts focuses on offering a comprehensive selection of replacement parts, batteries, engine components, and performance products for cars and light trucks.

The company’s product portfolio includes engine oils and lubricants, cooling system components, brake and suspension parts, filters, belts, hoses, and diagnostic tools.