Valvoline, the Consumer Cyclical sector company, was revisited by a Wall Street analyst yesterday. Analyst Max Rakhlenko from TD Cowen maintained a Buy rating on the stock and has a $37.00 price target.
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Max Rakhlenko has given his Buy rating due to a combination of factors that suggest potential growth and improvement in Valvoline’s performance. Despite a lower than expected margin guidance, primarily due to the Breeze acquisition, the core Valvoline business is anticipated to drive margin expansion in the coming fiscal year. Rakhlenko perceives the guidance as conservative, with potential for upside as the company integrates the new business and provides more details during its upcoming Investor Day.
Additionally, Valvoline’s strong fourth-quarter comparable sales and a solid fiscal year 2026 guidance indicate resilience against broader retail challenges. The company’s focus on premiumization and rational competition has contributed to its positive performance. Furthermore, the upcoming Analyst Day is expected to be a significant event that could reset expectations and improve market sentiment, as management is committed to expanding its store base and enhancing margins.
Rakhlenko covers the Consumer Cyclical sector, focusing on stocks such as Planet Fitness, AutoZone, and O’Reilly Auto. According to TipRanks, Rakhlenko has an average return of 8.2% and a 62.96% success rate on recommended stocks.