Genuine Parts Company may gain even in the face of President Donald Trump’s new tariff regime, according to Evercore ISI. Analyst Greg Melich on Friday upgraded the Atlanta-based auto parts distributor to outperform from in line and raised his price target by $7 to $135, implying nearly 14% upside over the next 12 months from Thursday’s close. The stock has fallen more than 3% in the past month and more than 13% in the past half year, but little changed so far in 2025 versus the S & P 500’s 8% decline this year. The stock yields 3.47%, according to FactSet. “We view GPC as one of the better insulated companies in our coverage from a tariff perspective, with the ability to pass through rising prices in both its Auto & Industrial segments,” Melich wrote in a note to clients. “There is even a possibility that earnings may move higher from tariffs.” GPC YTD mountain GPC, year-to-date With a forward price-to-earnings ratio below 14, according to FactSet, Melich believes that any risks associated with tariffs and a “choppy” low-income consumer is already baked into the stock. Some 60% of the company’s revenue comes from replacement auto parts, with Melich saying it’s likely well positioned to withstand any potential tariff impacts. “With small ticket need based products on offer and the price of a new and used vehicle likely to rise potentially by 5-15% there is going to be more value in repairing the car you do have to extend the useful life,” he wrote. “Plus, GPC’s strong Pro positioning means that the part typically makes up just a fraction of the end cost of the job. Labor, service overhead is the bulk.” Additionally, Melich said Genuine Part’s pricing power provides some insulation from higher costs tied to higher tariffs on imported goods. “The U.S. Auto part industry is historically rational on pricing, and we believe it likely to remain that way,” he wrote. “While GPC is a global business, the distribution of need based parts is local and GPC has scale and experience in their core markets.” Melich’s bullishness is in the minority on the Street. According to LSEG, only four analysts out of 14 are optimistic, rating it a strong buy or buy. Nine have stepped to the sidelines with a hold rating. Yet, analysts still call for stock upside ahead. Genuine Parts has an average target of roughly $129, suggesting the stock could move up 9%.
