O’Reilly Automotive (ORLY) is continuously benefiting from its dual market strategy and strong distribution network.
In the first quarter of 2010, the company beat the Zacks Consensus Estimate of $0.59 per share and its own guidance of $0.56-$0.60 per share by posting earnings of $0.70. The CSK acquisition is expected to boost the company’s earnings and savings in 2010, and will help the company outgrow its competitors.
Moreover, the company’s aggressive store opening strategy is well supported by its improving cash flow. Thus, we upgrade our recommendation from Neutral to Outperform with a target price of $57.00.Zacks Investment Research
