O'Reilly Automotive (ORLY) is showing a stronger-than-expected start to 2026, with January transaction data pointing to solid early demand that should help counter higher costs, RBC Capital Markets said Friday in a report.
RBC lifted its Q4 comparable-sales estimate to 5% and raised its earnings forecast to $0.73 a share. For 2026, the firm expects management to outline 2% to 4% comparable-sales growth and 5% to 7% earnings growth, noting that O'Reilly has a long track record of outperforming initial guidance.
Near-term demand drivers include the potential lift from tax refunds and additional maintenance and repair needs following recent winter storms, RBC said. O'Reilly plans to open 225 to 235 new US stores in 2026 and begin expansion into Canada, the report said.
RBC raised its price target on O'Reilly Automotive stock to $111 from $110 and maintained its outperform rating.
Q4 results are due Wednesday.
Price: 98.17, Change: -0.68, Percent Change: -0.69
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