Driven Brands selloff ‘significantly overdone,’ says Piper Sandler

Piper Sandler analyst Peter Keith can “understand extreme investor frustration” with today’s guide-down from Driven Brands given the view that the company has “presented investors a series of changes and missteps over the last 3 months.” However, the firm believes a greater than 40% selloff is “significantly overdone” as its bullish medium- and long-term view on the business and the shares hasn’t changed. Headwinds in car wash and glass that drove the guide-down should moderate next year, argues the analyst, who keeps an Overweight rating and $40 price target on Driven shares.