William Blair analyst Phillip Blee has maintained their neutral stance on DRVN stock, giving a Hold rating on October 25.
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Phillip Blee’s rating is based on a combination of factors that highlight both the strengths and challenges faced by Driven Brands Holdings. The company has shown encouraging performance in the third quarter, with positive comparable sales across its major segments, which bolsters the credibility of the new management team. This performance is particularly evident in the Take 5 brand, which has gained visibility and investor interest due to its ability to deliver consistent growth amidst an uncertain consumer environment.
However, despite these positive indicators, there are concerns about the fourth-quarter demand, which appears to be increasingly challenging. The franchise brands have shown improvement, particularly in the collision business, but the overall market conditions remain difficult. Additionally, while the international car wash segment has maintained positive comparable sales, it faces tough comparisons. These mixed signals suggest a cautious approach, leading to a Hold rating as the company navigates these headwinds.
According to TipRanks, Blee is a 4-star analyst with an average return of 11.2% and a 45.16% success rate. Blee covers the Consumer Cyclical sector, focusing on stocks such as Advance Auto Parts, Somnigroup International, and Five Below.
In another report released on October 25, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $15.00 price target.