Valvoline (VVV) is expected to formally revise its long-term algorithm at its investor day on Thursday, an event that could "be a net positive for shares," RBC Capital Markets analysts said in a Tuesday note.
RBC analysts anticipate the company to call for 4%-6% same-store sales growth, low double-digit revenue growth, and adjusted earnings before interest, taxes, depreciation, and amortization growth "faster than revenue."
The firm expects the investor day to boost confidence that management has intentionally set conservative targets.
This conservatism "along with lapping over tech investments/refranchising efforts should lead to positive EPS revisions and accelerating EPS growth," the firm said.
RBC maintained an outperform rating on the stock with a price target of $44.
Shares of Valvoline were down 3% in recent trading.
Price: 30.49, Change: -0.82, Percent Change: -2.62
Comments