Driven Brands initiated with a Market Perform at BMO Capital

BMO Capital initiated coverage of Driven Brands with a Market Perform rating and $14 price target. The analyst cites ongoing car wash headwinds and the company’s underperformance for the rating, saying it is in early innings in its newly-integrated glass business. While BMO thinks there is significant untapped potential to cross-sell Driven’s numerous businesses across its customer base, it remains on the sidelines with a “wait and see” approach pending more tangible results.