Valvoline Expected to Issue 'Fairly Conservative' Initial Fiscal 2027 Guidance, RBC Says

MT Newswires Live10-21

Valvoline (VVV) is expected issue "fairly conservative" initial fiscal 2027 guidance, assuming that there will be no material improvement on the elevated cost environment or the macro backdrop for the entirety of the year, RBC Capital Markets said in a Wednesday note.

Building on this, RBC lowered its estimates for fiscal 2027 and said it now expects same-store sales growth of 6% from 6.7% previously, adjusted earnings before interest, taxes, depreciation, and amortization to be $591 million from $621 million prior, and adjusted EPS to be $1.90 from $2.07 prior.

RBC said that the buyside is already positioned well-below consensus for fiscal 2027 and views fiscal Q4 print as a "clearing event for the name."

RBC remains confident in its fiscal Q4 estimates, expecting system-wide same-store sales growth of 9%, adjusted EBITDA of $146 million and adjusted EPS of $0.45, according to the note.

Valvoline is scheduled to report its fiscal Q4 results on Nov. 19.

RBC lowered its price target to $46 per share from $49 and maintained its outperform rating on the stock.

Price: 31.05, Change: -0.43, Percent Change: -1.37

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