Goldman Sachs lowers O’Reilly Automotive stock price target to $104

Goldman Sachs has reduced its price target for O’Reilly Automotive (ORLY) stock to $104.00 from $113.00, while retaining a Conviction Buy rating. The company's stock is currently trading at $88.07, near its 52-week low of $82.59. O’Reilly Automotive reported better-than-expected earnings for fiscal 2026, with increased earnings per share guidance and higher-than-expected comparable sales guidance for the second straight quarter.

Analysts attribute this growth to share gains. Despite commodity headwinds, O’Reilly maintains a strong gross profit margin of 51.79%. The investment firm anticipates the company to take market share and outperform peers, especially in service-related areas, while accelerating share repurchases and reinvesting in the business. However, the stock is currently considered overvalued relative to its Fair Value.