Driven Brands price target lowered to $18 from $22 at Piper Sandler

Piper Sandler lowered the firm’s price target on Driven Brands to $18 from $22 and keeps an Overweight rating on the shares following Q4 earnings. While Q4 EPS/EBITDA beat estimates, 2024 EPS/EBITDA was guided slightly below expectations due to potential headwinds from the macro and weather, the firm notes. Piper believes shares remain attractively valued at 11-times 2024 EBITDA for a company that is guiding for EBITDA to grow at a CAGR of 17% for the next three years. While the Street is understandably skeptical on this target, valuation seems to already be pricing in a big miss to the 2026 target of $850M of EBITDA, the firm adds.