Valvoline initiated with an Outperform at RBC Capital

RBC Capital analyst Steven Shemesh initiated coverage of Valvoline with an Outperform rating and $39 price target. Following the sale of its global products division, Valvoline will be a "faster growing, higher margin business, with strong" free cash flow generation, Shemesh tells investors in a research note. The analyst believes a 14-times target multiple appropriately balances its "industry leading growth against separation risk/terminal growth concerns."