Baird Starts Valvoline (VVV) at Outperform

Baird analyst Justin Kleber initiates coverage on Valvoline (NYSE: VVV) with a Outperform rating and a price target of $48.00.

The analyst comments "Initiating at Outperform, $48 price target. VVV is a trusted leader in the large, fragmented, and needs-based/recession-resilient auto services industry. With several drivers to sustain MSD%+ comps and an increasingly capital-efficient unit growth story (greater emphasis on franchise development), the “new” VVV offers investors high growth (we model ~LDD%/~20% revenue/EPS CAGR), improving free cash flow, and rising ROIC. From a tactical standpoint, near-term expectations have been reset following last week's F3Q results, and we believe the stock's pullback has created an attractive entry point into a durable retail compounder."

For an analyst ratings summary and ratings history on Valvoline click here. For more ratings news on Valvoline click here.

Shares of Valvoline closed at $39.69 yesterday.

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