Investing.com -- Bank of America upgraded AutoZone (NYSE: AZO ) shares to Buy from Neutral and raised its price target for the stock to $4,800 from $3,900 in a note Wednesday.

The bank highlighted stronger consumer demand dynamics and continued momentum across both the do-it-yourself (DIY) and professional (Pro) segments.

“We upgrade AZO to Buy… based on 27x FY2026E EPS (22x prior) to reflect our increasing confidence in AZO’s recession resilient history, ongoing share gains in both DIY and Pro,” BofA analysts wrote.

They also noted AutoZone’s “continued Pro tailwind from maturing commercial programs and roll-out of hubs and mega hubs.”

Bank of America expects solid third-quarter results, forecasting EPS of $38.15 versus the $36.80 consensus, and domestic comparable sales growth of 2.0%.

“We expect top-line strength given the sequential acceleration in Bloomberg Second Measure data… Weekly observed sales accelerated in March and grew HSD, likely due to favorable tax refunds,” the firm said, pointing to internal credit and debit card data that showed resilience in aftermarket auto spending.

BofA also sees macro trends as supportive for the industry. “We see opportunities for a return to 2%-4% industry inflation as auto parts retailers raise price to offset incremental tariff pressures,” analysts wrote.

They added that “the auto aftermarket could benefit from lower new car sales and higher used car pricing, as consumers may hold onto and repair existing vehicles.”

The firm pointed to ongoing investments in labor and commercial infrastructure as key drivers of future share gains.

“AZO continues to invest in initiatives as it sees opportunities to gain share on both sides of the business and could gain disproportionate share from AAP store closures given its store proximity,” BofA wrote.

The bank also notes that AutoZone’s commercial program penetration has now reached 92%, with further growth expected.