Analyst Note
| Zain Akbari, CFA |We do not plan to alter our $133 per share valuation of narrow-moat Genuine Parts significantly after it announced first-quarter earnings that suggest it should meet our 2022 expectations. With the firm’s profitability remaining strong despite inflation (8.6% total segment profit margin, up roughly 50 basis points), we believe the quarter reinforces our view that the company’s automotive and industrial segments possess durable competitive advantages in markets where customers are more focused on service than price.