Analyst Robert Ohmes from Bank of America Securities reiterated a Buy rating on Driven Brands Holdings (DRVN – Research Report) and increased the price target to $23.00 from $20.00.
Robert Ohmes has given his Buy rating due to a combination of factors that highlight Driven Brands Holdings’ robust performance and strategic positioning. The company reported strong first-quarter results, with adjusted earnings per share surpassing expectations and notable growth in the Take 5 Oil Change and international car wash segments. Despite some challenges in the franchise brands, particularly Maaco, the overall performance underscores the company’s resilience and ability to navigate economic cycles.
Ohmes also points out that Driven Brands is strategically positioned to benefit from potential market shifts, such as a decline in new car sales, which could increase demand for vehicle maintenance and repairs. The company’s efforts to reduce debt and its limited exposure to direct tariffs further strengthen its financial stability. With the sustained momentum of Take 5 and a diversified portfolio, Driven Brands is well-equipped to maintain its growth trajectory, justifying the Buy rating and an increased price objective.
In another report released today, Barclays also maintained a Buy rating on the stock with a $22.00 price target.
DRVN’s price has also changed moderately for the past six months – from $16.220 to $18.470, which is a 13.87% increase.