Valvoline initiated with Overweight on growth outlook at Piper Sandler

Piper Sandler analyst Peter Keith last night initiated coverage of Valvoline with an Overweight rating and $49 price target. After divesting its Global Products business in early 2023, Valvoline is now a pure-play quick lube service provider with an attractive growth outlook, the analyst tells investors in a research note. The firm is comfortable with the company’s algorithm for sales growth of 14%-16% and earnings growth of 20% given the “fragmented industry landscape” with share gain potential and its multitude of comp sales drivers.