Mizuho Securities analyst David Bellinger has reiterated their bullish stance on VVV stock, giving a Buy rating yesterday.
David Bellinger gave his rating based on several factors, including the strong financial performance of Valvoline in fiscal Q1. The company reported a notable increase in system-wide revenue by 14%, reaching $820 million, which contributed to a net revenue growth of 11%, surpassing market expectations. The increase in gross margins by 80 basis points and a corresponding expansion in EBITDA margin by 60 basis points also played a significant role in this positive assessment.
Additionally, David Bellinger highlighted Valvoline’s strategic share buyback program, which has already seen $60 million completed, indicating management’s confidence in the company’s future prospects. The projected comps for the remainder of FY25 are expected to remain strong, between 5-7%, despite any potential one-off or weather-related events. These factors, coupled with the company’s stable guidance for adjusted EBITDA and gross margins, reinforce the Buy rating as Valvoline continues to exhibit underlying business strength and resilience.
In another report released yesterday, RBC Capital also maintained a Buy rating on the stock with a $48.00 price target.
VVV’s price has also changed slightly for the past six months – from $43.000 to $39.580, which is a -7.95% drop .