Genuine Parts Company could be set for gains despite the recent tariff policies introduced under President Donald Trump, according to insights from Evercore ISI. Analyst Greg Melich recently upgraded the Atlanta-based auto parts distributor’s rating from “in line” to “outperform” and increased the price target by $7, bringing it to $135. This suggests nearly a 14% potential upside over the next year from the stock’s closing price on Thursday. Although the company’s shares have dipped more than 3% over the past month and over 13% in the last six months, they have remained relatively stable in 2025 compared to the S&P 500’s 8% decline this year. The stock currently offers a 3.47% yield, as reported by FactSet.
Melich expressed confidence in Genuine Parts, noting, “GPC is one of the better-insulated companies we cover regarding tariffs, thanks to their ability to pass on rising costs in both their Auto & Industrial segments.” He even hinted that tariffs might positively impact earnings.
At present, Genuine Parts has a forward price-to-earnings ratio below 14, according to FactSet, which leads Melich to assert that market concerns about tariffs and the unpredictability of low-income consumer behavior have already been factored into the stock’s price. With approximately 60% of its revenue derived from replacement auto parts, Melich is optimistic about the company’s ability to withstand any potential tariff implications. “The demand for small-ticket, essential items is high, especially as new and used vehicle prices potentially increase by 5-15%. Hence, maintaining and repairing existing vehicles becomes more valuable,” he explained. “Moreover, thanks to GPC’s strong professional positioning, the part cost is typically just a minor component of the total expense, as labor and service overheads account for most costs.”
Melich also pointed out that Genuine Parts’ pricing power would likely shield it from the impacts of higher tariffs on imported goods. “Historically, the U.S. auto parts market has been rational in its pricing strategies, and we anticipate this trend continuing,” he remarked. “Despite GPC’s global reach, their core operations focus on local distribution of essential parts, leveraging their scale and expertise in key markets.”
However, Melich’s optimistic stance isn’t widely shared among Wall Street analysts. According to LSEG, only four out of 14 analysts are optimistic, giving the stock a “strong buy” or “buy” rating, while nine have opted for a “hold” rating. Yet, despite the cautious sentiment, analysts still predict potential stock growth. With an average target price around $129, Genuine Parts could see a 9% rise from its current value.
