Evercore ISI has reiterated an Outperform rating on O’Reilly Automotive (NASDAQ:ORLY) and kept a $110.00 price target on the shares, while also taking the stock off its TAP Underperform List. The firm’s $110.00 objective implies roughly 18% upside from the prevailing quote of $92.86.
The decision to remove O’Reilly from the TAP Underperform List follows a share-price dip of approximately 6% since the retailer was placed on that list on Friday, January 30, 2026 - a decline that outpaced the S&P 500’s roughly 2% drop over the same interval.
Evercore flagged the company’s guidance for calendar year 2026, which calls for comparable sales growth of 3-5% and signals a deceleration versus the 5.6% comparable sales increase reported in the fourth quarter. The research note also cited InvestingPro data indicating O’Reilly achieved 6.42% revenue growth over the last twelve months.
Despite the more modest comparable-sales outlook, Evercore said it remains confident in O’Reilly’s underlying sales momentum. The firm pointed to what it characterizes as the retailer’s pricing power, execution capabilities, and market share gains as factors that support the $110.00 target. Evercore’s valuation uses a multiple of 29 times projected 2027 earnings per share.
Evercore recommended investors view recent weakness as a buying opportunity, noting that seasonal factors - specifically the upcoming tax refund period - could provide additional support to sales during the quarter. The research house also commented that extreme weather has affected results to date but that core trends remain intact.
O’Reilly’s most recent reported quarter showed a mixed financial picture. For fourth-quarter 2025 the company recorded earnings per share of $0.71, narrowly missing the consensus forecast of $0.72 - a downside surprise of 1.39%. Revenue for the quarter was $4.41 billion, topping expectations of $4.39 billion and representing a 0.46% upside surprise.
Those quarterly results, the updated guidance range for calendar 2026, and the subsequent share price volatility are central to Evercore’s view and its decision to remove the stock from the TAP Underperform List while maintaining an Outperform stance.
What this means
- Evercore continues to place a premium on O’Reilly’s pricing and execution as differentiators supporting above-market upside.
- The company’s guidance suggests a moderation in comparable sales growth for calendar 2026 versus recent quarterly performance.
- Mixed fourth-quarter 2025 results and near-term seasonality are driving investor attention to the shares.
Investor takeaway
Evercore’s removal of O’Reilly from its TAP Underperform List, alongside an unchanged $110.00 price target, signals the firm’s view that current pressure on the stock is temporary and that longer-term fundamentals remain favorable, provided the company sustains execution and benefits from seasonal tailwinds.