Genuine Parts Gets an Upgrade: Resilient Business, Tariff Tailwinds, and Share Gain Potential

Evercore ISI upgraded Genuine Parts Company (NYSE:GPC) from In Line to Outperform, setting a new price target of $135, citing the stock's stability in a volatile market, potential tariff tailwinds, and promising cost-cutting initiatives.

The firm sees Genuine Parts as one of the best-positioned names in its sector to handle rising global trade tensions. Both its automotive and industrial segments have pricing power that can absorb — and possibly even capitalize on — higher input costs from tariffs. While current forecasts sit below consensus, analysts believe that expectations are already sufficiently conservative, with the stock trading around 14x what’s considered depressed 2026 earnings.

In a key opportunity for upside, store closures at Advance Auto Parts (AAP) may allow Genuine Parts to capture displaced business, especially as independent operators from AAP’s CarQuest network potentially migrate to GPC's NAPA banner. This organic growth could be further amplified by $100 to $125 million in expected cost savings from recent restructuring, which is set to lift operating margins by as much as 60 basis points over the next two years.

Additionally, GPC's industrial segment could see renewed strength if U.S. manufacturing rebounds due to onshoring trends, potentially leading to higher capacity utilization and new project flow.

With around 12% upside to the new target and a 3.4% dividend yield, analysts say the stock is increasingly attractive for investors looking for defensive growth in an uncertain economic environment.