BMO Capital analyst Tristan M. Thomas-Martin has maintained their neutral stance on DRVN stock, giving a Hold rating yesterday.
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Tristan M. Thomas-Martin’s rating is based on a combination of factors that highlight both strengths and challenges for Driven Brands Holdings. The company’s third-quarter performance exceeded expectations, primarily due to strong results in the Take 5 segment and improvements in its Franchise brand. However, the start of the fourth quarter has been uneven, influenced by broader economic uncertainties, leading management to narrow its guidance for the year.
Despite the positive momentum in certain areas, macroeconomic headwinds are affecting Driven Brands’ more discretionary businesses, such as its car wash and glass segments. Additionally, while the company benefits from a diversified service offering and domestic sourcing advantages, the long-term implications of electric vehicle adoption pose systemic challenges. These factors contribute to the Hold rating, as the analyst remains cautious about the near-term outlook amidst these uncertainties.
In another report released yesterday, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $14.00 price target.