Shares of AutoZone Inc. AZO, +1.62% rose 0.7% in morning trade Thursday, after the auto parts retailer was upgraded at Wedbush, which cited "more reasonable" investor expectations and an improving industry outlook. Analyst Seth Basham raised his rating to outperform, after being at neutral since May 2017, and lifted his stock price target to $750 from $670. Basham said valuation is "attractive," after the stock had tumbled 14.6% since the company reported fiscal second-quarter results on Feb. 27 through Wednesday, compared with a 3.6% decline in the S&P 500 SPX, +0.89% Although AutoZone's same-store sales missed expectations, Basham said they outperformed the company's rivals. "We expects [AutoZone] comps to continue outperforming in 2018, driven by strong execution, price competitiveness and its faster-growing commercial business," Basham wrote in a note to clients. The stock was still down 18% over the past three months, while shares of rival Advance Auto Parts Inc. AAP, +1.83% have gained 1.9% and the S&P 500 SPX, +0.89% has slipped 3.2%.