Jefferies Starts Valvoline (VVV) at Buy

Jefferies analyst Laurence Alexander initiates coverage on Valvoline (NYSE: VVV) with a Buy rating and a price target of $27.00.

The analyst likes the diversification benefits as the industrial cycle grows "long in the tooth" with recessions risks weighing on the chemical sector's valuation multiples. He believes VVV has successfully navigated a rising raw material environment along with managements ability to allay the business with investor concerns following the recent spin. He believes share gains and IT investment will support an 8% sales CAGR and 14% EBITDA CAGR through 2020.

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 $20.93 yesterday.

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