Driven Brands Holdings Inc. (NASDAQ: DRVN) Receives Price Target Upgrade to $17.00 Amid Strong Q2 Performance
Piper Sandler has raised its price target on Driven Brands Holdings Inc. (NASDAQ: DRVN) to $17.00, citing a positive outlook following the company's second-quarter earnings report. Despite a slight sales shortfall, Driven Brands saw significant growth in EBITDA and EPS.
The automotive services company faced challenges such as reduced spending by lower-income groups and adverse weather affecting its car wash segment. However, there has been steady growth in commercial sales, indicating a positive trend.
While the car wash and glass segments have underperformed in the past year, recent improvements in comparable sales and margin trends have been observed. The upgraded price target is based on a multiple assumption of 15 times projected EPS for 2025.
InvestingPro data shows that Driven Brands has reported a revenue growth of 4.18% in the last twelve months and a gross profit margin of 41.13%. The stock has seen positive price momentum with a 1-month total return of 10.51% and a 3-month total return of 24.12%.
Investors looking for deeper insights can access additional tips from InvestingPro to make informed decisions about Driven Brands' stock. With a new CFO appointed and updated price targets from analysts, monitoring real-time metrics and expert tips could provide a strategic advantage in evaluating the company's performance.
In summary, Driven Brands' stock shows potential for growth despite recent challenges. With a positive outlook and steady financial performance, investors may consider this as an opportunity to capitalize on the company's future prospects.
