Mister Car Wash initiated with an Outperform at Raymond James

Raymond James initiated coverage of Mister Car Wash (MCW) with an Outperform rating and $10 price target The company holds just 1% market share of the “highly fragmented” U.S. car wash industry and is well positioned to capitalize on premiumization trends and incremental market share opportunities through new unit expansion and further member penetration, the analyst tells investors in a research note. The firm says that while competition and rising costs weighed on Mister Car Wash’s recent performance, it sees signs of cost stabilization and indications of an industry environment “starting to behave more rationally.”