Valvoline, the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst David Lantz from Wells Fargo maintained a Buy rating on the stock and has a $38.00 price target.
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David Lantz has given his Buy rating due to a combination of factors that suggest potential growth and opportunity for Valvoline. Despite current weak sentiment, the recalibration of fiscal year 2026 estimates appears appropriate, and the upcoming investor update is expected to provide clarity on gross margins and SG&A expenses following recent M&A activities. Lantz anticipates the company will present a refreshed multi-year growth algorithm, which includes promising sales and earnings growth targets, as well as initiatives that could drive further expansion.
Valvoline’s initiatives, such as fleet expansion and efficiency improvements, are gaining traction, with fleet sales outpacing the consumer segment and mature stores servicing significantly more vehicles than the industry average. The company has also captured additional market share in the U.S. oil change sector. Although there are concerns regarding franchise unit growth and the integration of Breeze, Lantz views the recent stock sell-off as an overreaction, considering the achievable fiscal year 2026 expectations and the company’s strategic positioning for sustainable growth.
Lantz covers the Consumer Cyclical sector, focusing on stocks such as Valvoline, Carvana Co, and Monro Muffler. According to TipRanks, Lantz has an average return of 3.3% and a 43.24% success rate on recommended stocks.