Monro Muffler Rises Amid Favorable Outlook for Auto Servicesby
Monro Muffler Brake Inc. rose the most in almost eight months as auto-service companies benefit from drivers who don’t want to change their own tires.
The shares climbed 4.7 percent to $58.62 for the biggest daily gain since Jan. 12. The stock has fallen 11 percent this year.
Monro, which operates a chain of U.S. stores that provide under-car repairs and tire services, is among auto-parts retailers and service providers that investors see as having a favorable future as the industry consolidates and consumers shift toward a “do-it-for-me” trend, according to a recent report from the Susquehanna Financial Group.
Monro is “well-positioned to drive industry consolidation and take advantage” of the demand for repairs to “increasingly complex vehicles,” Ali Faghri, a Susquehanna Financial analyst, wrote in an Aug. 25 note. He rates Monro as positive and called the Rochester, New York-based company a “high-quality growth story.”