Seaport Global Securities Starts Valvoline (VVV) at Buy
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Seaport Global Securities initiates Valvoline (NYSE: VVV) with a Buy rating and a price target of $27.00 following last week's IPO.
Analyst Michael Harrison commented, "Following its first day of trading, we maintain our $27 price target and assign a Buy rating on VVV. We anticipate strong earnings growth driven by the quick lubes and international businesses, along with solid underlying market growth related to low gasoline prices and the ongoing shift toward higher-margin do-it-for-me (DIFM) service. We are modeling some modest margin pressure from rising raw material costs, though we believe this should be manageable, particularly if crude oil prices remain low. Our price target corresponds to 13.5x our FTM EBITDA estimate; we note shares are currently trading at 12.3x our FTM EBITDA estimate."
Shares of Valvoline closed at $23.10 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, IPOs, New Coverage
Related EntitiesCrude Oil, Earnings, IPO
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