Peter Benedict, an analyst from Robert W. Baird, maintained the Buy rating on Driven Brands Holdings (DRVN – Research Report). The associated price target remains the same with $17.00.
Peter Benedict has given his Buy rating due to a combination of factors concerning Driven Brands Holdings. His analysis begins with the acknowledgment that while investor confidence needs rebuilding, the first quarter results seem to be in line with expectations, suggesting the company’s FY24 guidance might remain consistent. He sees potential in Driven Brands maintaining its financial outlook, especially if stability is shown in its U.S. Car Wash and U.S. Glass operations. Benedict also sees value in the stock due to its significant discount compared to its auto services peers and his own sum-of-the-parts valuation suggests a fair value considerably higher than the current stock price.
Benedict’s optimism is partly based on the company’s system-wide sales performance, particularly the upward trend in Maintenance revenue, which seems poised to exceed previous benchmarks according to Bloomberg SecondMeasure data. Additionally, his analysis suggests that the company is undervalued at its current trading price, as it sits well below the industry average on an adjusted EBITDA basis. The potential for Driven Brands to outperform the market, combined with operational improvements and a solid financial position, underpins Benedict’s Buy rating for the stock.
In another report released on April 16, RBC Capital also maintained a Buy rating on the stock with a $17.00 price target.
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Driven Brands Holdings (DRVN) Company Description:
Driven Brands Holdings Inc is an automotive services company. The company provides an extensive range of core consumer and commercial automotive needs, including paint, collision, glass, vehicle repair, oil change, maintenance and car wash.
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