Analyst Upgrade on Genuine Parts (GPC) Follows Planned Business Split

Group 1 - Genuine Parts Co. (NYSE:GPC) is considered one of the 10 most undervalued stocks to buy and hold for 10 years, with a recent upgrade to Strong Buy from Outperform by Raymond James, which set a price target of $145 per share [1] - The upgrade is based on a sum-of-the-parts valuation following the planned separation of the company's auto and industrial businesses, expected to be completed by the first quarter of 2027 [3] - Early 2026 data indicates a potential inflection point in industrial demand, supported by stronger U.S. manufacturing production and rail traffic trends, which are likely to benefit Genuine Parts Co. [1] Group 2 - Raymond James valued the Motion industrial segment of Genuine Parts Co. at approximately 15x forward EBITDA, which is a discount compared to its peer Applied Industrial Technologies at around 17x [2] - The North America Auto segment was assigned a 10x EBITDA multiple, in line with competitor Advance Auto Parts, while the International Auto segment received an 8x multiple [2] - Under these assumptions, the fair value of Genuine Parts Co. was calculated to be about $145 per share, including $50 million of stranded costs [2] Group 3 - Genuine Parts Co. distributes automotive and industrial replacement parts, with its Automotive Parts Group operating across North America, Europe, and Australasia, and its Industrial Parts Group serving customers in North America and Australasia [4]