Morgan Stanley points to more upside for O'Reilly Automotive

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Morgan Stanley defended its bullish view on O'Reilly Automotive (NASDAQ:ORLY [https://seekingalpha.com/symbol/ORLY]) on Thursday following the auto retailer's third-quarter earnings report.

Analyst Simeon Gutman pointed to a risk-reward profile on O'Reilly Automotive (NASDAQ:ORLY [https://seekingalpha.com/symbol/ORLY]) that skews positive. "Our thesis remains intact; we continue to view ORLY as a best-in-class retailer with the ability to continue gaining market share in the structurally advantaged auto parts sector, as evidenced by Q3'25 comps of +5.6% (vs. Street at +4.7%)," highlighted Gutman.

The firm raised its base case price target on O'Reilly Automotive (ORLY [https://seekingalpha.com/symbol/ORLY]) to $115, which Gutman called fair given ORLY's sustained comparable sales and earnings momentum, continued share gains, and possible upward earnings revisions. Morgan Stanley has a bull case price target of $145 on O'Reilly Automotive (ORLY [https://seekingalpha.com/symbol/ORLY]).

With its Q3 earnings report, O'Reilly Automotive reported revenue rose 8% to $4.71 billion and EPS increased 12% to $0.86. Both marks topped consensus expectations. Comparable store sales grew 5.6% during the quarter, operating income rose 9% to $976 million, and net income was $726 million. Strong aftermarket demand led the company to raise its annual revenue guidance to $17.6 billion to $17.8 billion.

Shares of O'Reilly Automotive (ORLY [https://seekingalpha.com/symbol/ORLY]) fell 3.3% in afternoon trading on Thursday. The stock has been a strong performer in 2025, with a gain of over 24%.

MORE ON O'REILLY AUTOMOTIVE

* O'Reilly Automotive: Share Gain Momentum Is Real, But Valuation Remains Expensive (Rating Upgrade) [https://seekingalpha.com/article/4818793-oreilly-automotive-share-gain-momentum-is-real-but-valuation-remains-expensive-rating-upgrade]
* O'Reilly Automotive: Deep-Dive Reveals A Superb Business Running A Rich Valuation [https://seekingalpha.com/article/4816727-oreilly-automotive-deep-dive-reveals-a-superb-business-running-a-rich-valuation]
* O'Reilly Automotive GAAP EPS of $0.86 beats by $0.03, revenue of $4.71B beats by $20M [https://seekingalpha.com/news/4507134-oreilly-automotive-gaap-eps-of-0_86-beats-by-0_03-revenue-of-4_71b-beats-by-20m]
* O'Reilly Automotive Q3 2025 Earnings Preview [https://seekingalpha.com/news/4506275-oreilly-automotive-q3-2025-earnings-preview]
* Seeking Alpha’s Quant Rating on O'Reilly Automotive [https://seekingalpha.com/symbol/ORLY/ratings/quant-ratings]