Analyst Upgrade on Genuine Parts (GPC) Follows Planned Business Split

Genuine Parts Co. (NYSE:GPC) is among the 10 astir undervalued stocks to bargain and clasp for 10 years.

On February 24, Raymond James upgraded its standing connected Genuine Parts Co. (NYSE:GPC) to Strong Buy from Outperform, with a $145 terms people attached. The concern steadfast said that this accommodation is based connected a sum-of-the-parts valuation pursuing the planned separation of the company’s car and concern businesses. The expert besides said aboriginal 2026 information amusement a imaginable inflection constituent successful concern demand, citing stronger U.S. manufacturing accumulation and obstruction postulation trends, which are apt to payment the company.

In its report, Raymond James valued the Motion concern conception of Genuine Parts Co. (NYSE:GPC) astatine astir 15x guardant EBITDA, a discount to nonstop adjacent Applied Industrial Technologies, which trades adjacent 17x. The steadfast besides applied a 10x EBITDA aggregate to the company’s North America Auto segment, successful enactment with rival Advance Auto Parts, and an 8x aggregate to the International Auto segment. Under those assumptions, the steadfast calculated a just worth of astir $145 per share, including $50 cardinal of stranded costs.

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Raymond James expects the separation to beryllium completed by the archetypal 4th of 2027, with capitalist days for some businesses planned successful the 2nd fractional of 2026.

Genuine Parts Co. (NYSE:GPC) distributes automotive and concern replacement parts. Its Automotive Parts Group operates crossed North America, Europe, and Australasia, portion the Industrial Parts Group serves customers crossed North America and Australasia.

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