GPC Target Lowered to $124 with Margin Recovery Notes

Truist Financial has lowered its price target on Genuine Parts Company (GPC) from $127 to $124 while maintaining a Hold rating. This adjustment follows a Q1 earnings beat, with U.S. auto comps rising by 3% and North America EBITDA margin increasing from 5.5% in Q4 to 6.6%. CFO Nappier confirmed that diluted EPS is expected between $6.10 and $6.60, with adjusted diluted EPS projected in the range of $7.50 to $8. GPC anticipates a full-year sales growth of 3% to 5.5%, with pricing expected to contribute about 2%.