Analyst Brian McNamara from Canaccord Genuity maintained a Buy rating on Driven Brands Holdings and keeping the price target at $24.00.
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Brian McNamara has given his Buy rating due to a combination of factors influencing Driven Brands Holdings. One key reason is the strong performance of Take 5 Oil Change, a subsidiary of Driven Brands, which has shown consistent same-store sales growth for 21 consecutive quarters. This growth is supported by the company’s strategic focus on premiumization, with premium oils making up a significant portion of sales, and the expansion of non-oil change services, which now contribute substantially to total sales.
Furthermore, recent results from a competitor, Valvoline, indicate that customers are not deferring oil changes, which alleviates concerns about potential market volatility. The rapid expansion of Take 5 Oil Change, with the opening of numerous new stores, also underscores the company’s growth potential. These factors combined suggest a positive outlook for Driven Brands, justifying the Buy rating.
In another report released on November 17, Stifel Nicolaus also maintained a Buy rating on the stock with a $23.00 price target.
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.