Report
Zain Akbari
EUR 100.00 For Business Accounts Only

O’Reilly Should Leverage Its Strong Brand and Cost Position Amid Favorable Industry Conditions

Our $282 per share valuation for narrow-moat O'Reilly should not change significantly after it posted third-quarter earnings. Our long-term forecast is also intact, calling for 5% annual revenue growth and 20% operating margins, on average, over the next decade. Although our enthusiasm for the firm's operational prowess, balanced sales mix, and best-in-class distribution network (which O'Reilly's new plans to open two new distribution centers by 2020 should augment) is undiminished, we suggest i...
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

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