Valvoline initiated with an Outperform at Baird

Baird initiated coverage of Valvoline with an Outperform rating and $48 price target. With several drivers to sustain positive mid-single-digit comps and an increasingly capital-efficient unit growth story, the “new” Valvoline offers investors high growth, improving free cash flow, and rising ROIC, the analyst tells investors in a research note. The stock’s pullback has created an attractive entry point into a durable retail compounder, the firm added.