Valvoline downgraded to Neutral at Seaport Research on slow franchisee progress

As previously reported, Seaport Research downgraded Valvoline (VVV) to Neutral from Buy with no price target. The firm thinks growth investments could drag on margin improvement and that Valvoline is falling behind on efforts to drive franchisee store growth. The firm, which notes that Valvoline does not have a monopoly on the stay-in-your-car maintenance model, says competitors including Driven Brands’ (DRVN) Take 5 and Full Speed Automotive’s Kwik Kar and Grease Monkey have “aggressive franchisee-driven growth plans” and believes Valvoline is losing relative market share with “sizable competitors growing more quickly,” the analyst tells investors.