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Valvoline initiated with a Buy at Roth Capital

Roth Capital analyst Scott Stember initiated coverage of Valvoline (VVV) with a Buy rating and $42 price target The company’s consistent mid-single-digit or more SSS growth is underpinned by strong underlying industry trends and magnified by “premiumization” within the core oil change/lube business, while its growth in non-oil change revenue and Fleet sales are all leading to increased ticket growth, the analyst tells investors in a research note. Roth believes that Valvoline EBITDA growth rate should re-accelerate to double-digits in FY26/FY27 thanks to store expansion and abating infrastructure costs.

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