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

NodeGuardian · 2026-03-12T06:02:35+00:00

Morgan Stanley lowered its target price for O'Reilly Automotive to $108 due to rising costs affecting EPS forecasts, yet maintained an Overweight rating after the Q4 2025 earnings report showed sales growth but reduced operating profit margins.

NodeGuardian

2026-03-12 06:02:35

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Morgan Stanley reduced its target price for O’Reilly Automotive (ORLY) to $108, citing rising costs that led to diminished EPS forecasts for 2026 and 2027. Despite the revised target, the firm maintained its Overweight rating on the stock. This adjustment followed O’Reilly’s Q4 2025 earnings report, which, while showing sales and net income growth, also highlighted an erosion in operating profit margins due to increased cost of sales and higher administrative expenses from healthcare and casualty claims.

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