Citi analyst Kate McShane downgraded Advance Auto Parts (AAP) to Sell and cut her price target for the shares to $82 from $99. The company's turnaround seems to be taking longer given the number of issues to fix, and its cost savings are unlikely to impact earnings given its needed investments, McShane tells investors in a research note titled "Still Pricey for a Fixer-Upper and There is a Lot to Fix in a Possibly Slower Industry Growth Environment." The analyst believes the stock's valuation remains rich relative to peers. She recommends a pair trade of long O'Reilly Automotive (ORLY), short Advance Auto.
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