In a report released yesterday, David Lantz from Wells Fargo maintained a Buy rating on Valvoline, with a price target of $44.00.
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David Lantz has given his Buy rating due to a combination of factors that suggest a promising outlook for Valvoline. Despite a slight underperformance in same-store sales comparisons, the company demonstrated strong gross margin and adjusted EBITDA growth, exceeding consensus expectations. This performance, coupled with ongoing momentum and a favorable outlook for the fourth quarter, presents a solid entry point for investors.
Additionally, Valvoline’s strategic initiatives, such as accelerating franchise unit growth and achieving sustainable market share gains, contribute to a positive long-term trajectory. The company’s focus on premiumization and technological investments further supports its growth potential. With expectations of improved SG&A leverage in the coming fiscal year, Valvoline is well-positioned to capitalize on its strengths and navigate near-term challenges effectively.
In another report released today, TD Cowen also maintained a Buy rating on the stock with a $45.00 price target.
Based on the recent corporate insider activity of 35 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of VVV in relation to earlier this year.