turnaround + margin expansion; $150 stock target.
Advanced Auto Parts is a turnaround with margin expansion returning, and the thesis targets a $150 stock outcome.
The case cites steps like selling a Canadian business and discontinuing unprofitable stores, plus a return to growth and margin expansion across markets. The $150 target is anchored to when operating margins reach the company’s targeted 2027–2028 levels, implying the current price under-discounts the turnaround.
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