O'Reilly Automotive, AutoZone, Advance Auto Parts Poised for Net Positive Impact From Inflation, BofA Says

10:38 AM EDT, 10/26/2026 (MT Newswires) -- O'Reilly Automotive (ORLY), AutoZone (AZO), Advance Auto Parts (AAP) poised to see net positive impact from low-single digit to mid-single digit inflation, with the auto parts subsector historically outperforming S&P during periods of over 3% motor vehicle parts and equipment inflation, BofA Securities said in a Monday note. Recent industry commentary is pointing to upward revisions from prior expectations, with Advance Auto Parts raising its H2 outlook to 3% from 2% and AutoZone raising fiscal Q1 average ticket expectation to 5% from 4%, according to the note. BofA added that it sees potential upside to O'Reilly Automotive's 1% to 2% same-SKU or stock keeping unit inflation outlook, that was provided before the reacceleration in oil prices in August. BofA reinstated coverage on O'Reilly Automotive and AutoZone with respective buy ratings and price targets of $106 and $3,800. Advance Auto Parts was reinstated at underperform and a $42 price target. Price: 91.12, Change: +1.20, Percent Change: +1.33