Analyst Robert Ohmes of Bank of America Securities maintained a Buy rating on Driven Brands Holdings (DRVN – Research Report), retaining the price target of $20.00.
Robert Ohmes has given his Buy rating due to a combination of factors that highlight Driven Brands Holdings’ strategic positioning and growth potential. The company has demonstrated robust performance in its Take 5 oil change segment, driven by effective marketing strategies and the potential for premiumization and expansion into non-oil change services. This segment’s growth is supported by a strong pipeline of new units, with a significant portion being franchise stores that offer attractive financial returns.
Additionally, Driven Brands’ strategic moves, such as the sale of its underperforming US car wash business, are expected to aid in deleveraging and refocusing on high-margin areas like Take 5. The re-segmentation plan is anticipated to provide clearer insights into the company’s core business strengths, particularly in its stable franchise operations. Despite economic uncertainties, Driven Brands is positioned to thrive due to the non-discretionary nature of its services, and the company’s focus on organic growth and strategic portfolio management is expected to support its valuation and market share gains.
In another report released on February 28, Stifel Nicolaus also maintained a Buy rating on the stock with a $22.00 price target.
DRVN’s price has also changed moderately for the past six months – from $13.620 to $16.260, which is a 19.38% increase.
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