
Valvoline (VVV) Stock Forecast & Price Target
Valvoline (VVV) Analyst Ratings
Bulls say
Valvoline Inc's strong outlook is supported by its healthy balance between franchised and company-owned stores, with a projected shift towards higher-margin franchise growth. The company experienced a significant increase in fleet sales by 25% in 2023, outpacing consumer growth, which, coupled with the year-over-year increase in vehicle miles driven since 2011, positions Valvoline for accelerated sales growth. Additionally, with an impressive unit growth acceleration at an 8.2% compound annual growth rate (CAGR) since 2016 and the resilient quick lube industry benefiting from the critical demand for oil changes, Valvoline is well-positioned to sustain its revenue momentum through ongoing service expansions and pricing flexibility.
Bears say
Valvoline Inc. faces a challenging outlook due to stagnant unit growth in the Jiffy Lube segment, contributing to concerns about its ability to capture expanding market share in a competitive environment. The company's earnings per share (EPS) is currently trending towards the mid-point or slightly below prior guidance, coupled with a contraction in gross margin, driven by depreciation challenges and a negative EBITDA impact from recent store refranchising activities. Additionally, a notable decline in drivers opting for dealership maintenance, now at approximately 30%, further exacerbates the difficult landscape for auto maintenance services, reflecting broader trends affecting the auto-aftermarket sector.
This aggregate rating is based on analysts' research of Valvoline and is not a guaranteed prediction by Public.com or investment advice.
Valvoline (VVV) Analyst Forecast & Price Prediction
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