As the saying holds, when things get tough, the tough get going. Yet to get anywhere, most Americans need a car, in both good economic times and bad. That’s good news for auto parts retailers, particularly
D.A. Davidson analyst Michael Baker raised his rating on O’Reilly (ticker: ORLY) to Buy from Neutral on Wednesday, while boosting his price target to $740 from $700.
He’s the latest analyst to get more constructive on auto-parts retailers, a group that’s historically done well in tougher economic times, when consumers are more likely to fix their cars than buy new ones.
Baker’s bullish thesis comes in four parts. First, he raised his estimates for auto-parts retailers, as the nondiscretionary nature of many of their products—you can safely hold off replacing your car’s air freshener for