On May 23, TD Cowen raised the firm’s price target on Advance Auto Parts, Inc. (NYSE:AAP) from $40 to $53, while maintaining a Hold rating.

The raised target price comes after the company reported better than expected results for first-quarter of fiscal 2025.TD Cowen Raised Price Target on Advance Auto Parts (AAP), After Q1 2025 Report

A manufacturing facility floor filled with an array of automotive parts and accessories.

Advance Auto Parts, Inc. (NYSE:AAP) is a major automotive company dealing in aftermarket parts. The company serves both professional installers and Do-It-Yourself customers. The company reported a revenue of $2.58 billion for the first quarter, which declined 24.17% year-over-year but surpassed market consensus by $74.22 million. The Non-GAAP EPS came in at negative $0.22, also topping expectations by $0.47.

In addition, Chief Financial Officer, Ryan Grimsland noted that they expect DIFM (Do-It-For-Me) to be one of the key drivers for the business. Therefore, despite the tariff pressure, Advance Auto Parts, Inc. (NYSE:AAP) reaffirmed full-year guidance for the year. It expects net sales to be between $8.4 billion to $8.6 billion, with adjusted EPS in the range of $1.50 and $2.50.

TD Cowen is encouraged by DFIM gaining momentum and also believes the company is delivering better than expected margins. The firm expects Advance Auto Parts, Inc. (NYSE:AAP) to achieve its top and bottom-line targets for the year.

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