Analyst David Lantz of Wells Fargo maintained a Buy rating on Valvoline, reducing the price target to $38.00.
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David Lantz has given his Buy rating due to a combination of factors that highlight Valvoline’s potential for growth despite some short-term challenges. The company has shown strong performance in its fourth quarter, with comparable sales exceeding expectations and ongoing market share gains. Although there are concerns about the dilution effects from the Breeze acquisition impacting earnings, the long-term outlook remains positive with accelerating unit growth and strategic initiatives expected to drive future performance.
Additionally, Valvoline’s transaction growth and premiumization efforts are contributing positively to its sales, and the company is expanding its geographical footprint through partnerships with franchisees. The anticipated investor update is expected to provide further insights into Valvoline’s strategic direction and initiatives, reinforcing confidence in its ability to achieve its financial targets. These factors collectively support the Buy rating, as they indicate a strong foundation for sustained growth and profitability.
In another report released today, TD Cowen also maintained a Buy rating on the stock with a $37.00 price target.