Auto Parts Company Closing 700 Stores Sees 10% Surge Amid Turnaround Expectations

Advance Auto Parts (AAP) jumped 10.22% on the New York Stock Exchange on the 21st, closing at $45.53. Its market capitalization rose to about $2.73 billion (roughly KRW 3.6 trillion), representing a one-day increase of approximately $310 million (around KRW 400 billion). Trading volume topped 1.68 million shares, a significant uptick from its average.

The rally followed North Coast Research’s upgrade of AAP from Neutral to Buy, with a new price target of $55. The analyst highlighted the company’s potential turnaround after a sweeping restructuring. Earlier, Advance Auto Parts accelerated cost cuts and portfolio realignment by closing 523 company-owned stores, 204 franchised outlets and four distribution centers, and announcing the $1.5 billion sale of its Worldpac division.

Founded in 1932, AAP is a leading North American distributor of automotive aftermarket parts, operating more than 4,000 stores across the U.S. and Canada and serving both repair shops and individual consumers. Headquartered in Raleigh, North Carolina, the company has been under pressure to defend market share against rivals O’Reilly Automotive and AutoZone, prompting a major restructuring and supply-chain simplification initiative launched in 2024.