Valvoline downgraded to Equal Weight from Overweight at Morgan Stanley

Morgan Stanley downgraded Valvoline (VVV) to Equal Weight from Overweight with a price target of $38, down from $42. The firm believes Valvoline’s long-term comp and margin drivers are “strong and intact,” but expects 2025 to be below average due to disinflation, near-term margin headwinds, and increased competition. Given that other industries and companies appear poised for an inflection, the stock’s risk/reward seems more attractive elsewhere, the analyst tells investors in a research note.