Valvoline initiated with a Hold at Stifel

Stifel analyst Chris O’Cull initiated coverage of Valvoline (VVV) with a Hold rating and $42 price target Valvoline, a pure-play automotive service provider and one of the largest quick lube operators in the U.S., expect to grow revenue 10%-14% and adjusted EPS 8%-15% in FY25 on a pro forma basis, the analyst noted. However, the company also pulled its long-term sales and same-store sales outlook, notes the firm, which says it s”enthusiasm is tempered somewhat” by unit-level returns and that it would likely be more constructive if the company successfully reduced the investment outlay to improve unit-level returns.