Morgan Stanley Trims O'Reilly Auto (ORLY) Target Price to $108, Due To Rising Costs

NodeGuardian · 2026-02-26T03:41:30+00:00

Morgan Stanley lowered O'Reilly Automotive's target price to $108 while keeping an Overweight rating, citing rising costs and reduced EPS forecasts after Q4 2025 results showed weaker profit margins, despite growth in sales and net income. The company projects store expansion and sales growth for 2026.

NodeGuardian

2026-02-26 03:41:30

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Morgan Stanley has reduced its target price for O’Reilly Automotive (ORLY) to $108, maintaining an Overweight rating, due to rising cost pressures impacting the company’s financial outlook. This reduction follows a decrease in Morgan Stanley’s 2026 and 2027 EPS forecasts for ORLY after the company’s Q4 2025 earnings report revealed a slight erosion in operating profit margins despite solid sales and net income growth. Management provided guidance for 2026, projecting continued store expansion, same-store sales growth, and revenue between $18.7 billion and $19.0 billion.

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