Raymond James upgraded Genuine Parts Company to Strong Buy from Outperform, setting a $145 price target based on the company's planned separation of its Auto and Industrial businesses. The brokerage values the Motion industrial segment at roughly 15 times forward EBITDA, while assigning 10 times to North America Auto and 8 times to International Auto.

The $145 target includes $50 million of stranded costs and assumes the separation will be completed by the first quarter of 2027. Raymond James noted that if Motion were valued at 15 times, the market would be implying roughly 4.5 times EBITDA for the combined Auto businesses, compared to about 15 times for peers such as O'Reilly Automotive. The firm expects investor days for both businesses in the second half of 2026.

Early 2026 data show a possible inflection in industrial demand, with stronger U.S. manufacturing production and rail traffic trends supporting the bullish case. However, risks include continued weakness in the European auto aftermarket, potential pricing pressure in North America, and the possibility that Motion is valued closer to its historical average multiple. Even using a lower multiple near 11.5 times, Raymond James said its analysis implies a share price around $120, still above current levels.