Analyst Brian McNamara of Canaccord Genuity maintained a Buy rating on Driven Brands Holdings, retaining the price target of $24.00.
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Brian McNamara has given his Buy rating due to a combination of factors, primarily driven by Driven Brands Holdings’ strategic divestiture of its International Car Wash business. This move aligns with the company’s long-term strategy to streamline its portfolio and enhance its financial stability. The sale of the International Car Wash business to Franchise Equity Partners for approximately $471 million USD is expected to simplify the company’s operations and strengthen its balance sheet by reducing leverage.
The transaction is anticipated to close in the first quarter of 2026, and the proceeds will be utilized to pay down debt, demonstrating the company’s commitment to achieving its target net leverage ratio by the end of 2026. Additionally, the re-segmentation of Auto Glass Now as a standalone segment indicates significant progress in that area, further supporting the company’s growth prospects. Despite the reduction in revenue and adjusted EBITDA guidance due to the divestiture, the company’s focus on its core Oil Change business and net store growth remains strong, reinforcing the positive outlook for Driven Brands Holdings.
Based on the recent corporate insider activity of 28 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of DRVN in relation to earlier this year.