Genuine Parts: Despite Conservative Near-Term Outlook, We Confirm Our Long-Term Buy

  • GPC benefits from an aging vehicle fleet, rising automotive complexity, tariff protections, and steady M&A, supporting long-term growth despite near-term pressures. Q2 results showed resilient sales and margin expansion, with M&A and FX as key drivers, though net profit and free cash flow were down year-over-year. Valuation remains attractive, despite risks like inventory build and industrial softness.