Report
Zain Akbari, CFA
EUR 101.80 For Business Accounts Only

On-Track 3Q Leaves O’Reilly Poised to Meet Our 2017 Targets; Shares Attractive

O’Reilly’s third-quarter results should not lead to a large change for our $242 per share fair value estimate for the narrow-moat retailer despite less optimistic full-year guidance that nonetheless is consistent with our full-year targets. We remain convinced the shares are attractive.
Year to date, O’Reilly has posted 5% sales growth against a 19.5% operating margin (40 basis points lower than the same period last year), against our respective 2017 marks of 4% and 19.4% (also corresponding to ...
Underlying
O'Reilly Automotive Inc.

O'Reilly Automotive is a retailer of automotive aftermarket parts, tools, supplies, equipment and accessories, selling its products to both do-it-yourself and service provider customers. The company's stores carry a product line, including: new and remanufactured automotive hard parts and maintenance items, such as alternators, batteries, brake system components, belts, chassis parts, driveline parts, engine parts, fuel pumps, hoses, starters, temperature control, water pumps, antifreeze, appearance products, engine additives, filters, fluids, lighting, oil and wiper blades; and accessories, such as floor mats, seat covers and truck accessories.

Provider
Morningstar
Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

Analysts
Zain Akbari, CFA

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