Max Rakhlenko, an analyst from TD Cowen, maintained the Buy rating on Valvoline (VVV – Research Report). The associated price target remains the same with $40.00.
Max Rakhlenko has given his Buy rating due to a combination of factors that highlight Valvoline’s strong performance and strategic positioning. The company has shown impressive comparable sales growth, particularly in the early months of the third quarter, which suggests a robust second half of the fiscal year. This momentum is driven by successful premiumization and pricing strategies, contributing significantly to overall growth. Despite macroeconomic challenges, Valvoline has managed to maintain positive transaction growth without significant deferrals or trade-downs.
Additionally, Valvoline’s resilience against tariff impacts further supports the Buy rating. The company’s strategic sourcing adjustments and exemption from tariffs on key product costs like base oils position it well to mitigate potential cost increases. Although there are some margin pressures, particularly in the second half, the potential easing of these headwinds and the expected benefits from declining base oil prices provide a positive outlook. Overall, these factors contribute to a favorable long-term growth trajectory for Valvoline, justifying the Buy recommendation.
According to TipRanks, Rakhlenko is a 4-star analyst with an average return of 6.6% and a 55.10% success rate. Rakhlenko covers the Consumer Cyclical sector, focusing on stocks such as Planet Fitness, O’Reilly Auto, and OneSpaWorld Holdings.
In another report released on May 5, Piper Sandler also maintained a Buy rating on the stock with a $45.00 price target.