Mizuho Starts Valvoline (VVV) at Buy, 'Vintage Brand, New Growth Angle'

Mizuho analyst David Bellinger initiates coverage on Valvoline (NYSE: VVV) with a Buy rating, PT $50.00.

The analyst comments "Summary The newly formed Valvoline retail platform represents one of the more compelling intermediate-term opportunities within consumer, offering an entry point into the recurring demand of the automotive services space. VVV is now at the rare intersection of growth and productivity, as its asset-light network buildout accelerates (>50% franchised units) and the benefits of scale kick in. We do not fully dismiss EV concerns. However, we view any material impact to the business as several years out and likely closer to the early 2030s. Shares' valuation remains attractive in our view given our outlook for a three-year earnings CAGR of +25% coupled with ongoing capital returns. Initiate at Buy with a $50 PT."

For an analyst ratings summary and ratings history on Valvoline click here. For more ratings news on Valvoline click here.

Shares of Valvoline closed at $43.66 yesterday.

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