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Investing.com - Canaccord Genuity has reiterated its Buy rating and $24.00 price target on Driven Brands (NASDAQ:DRVN), currently trading at $17.07, following a survey of oil change and collision repair locations. According to InvestingPro data, analysts maintain a bullish consensus with price targets ranging from $18 to $25, suggesting significant upside potential. The stock appears slightly undervalued based on InvestingPro’s Fair Value analysis.
The investment firm surveyed 50 oil change locations, including 40 Take 5 and 10 Valvoline sites, to assess business trends, daily service volume, promotional activity, and consumer deferral patterns amid economic concerns. A separate survey examined 25 collision repair shops, including 13 Caliber Collision and 12 CARSTAR locations owned by Driven Brands. The company has demonstrated strong growth, with InvestingPro data showing revenue growth of 12.7% in the last twelve months and an impressive 31% CAGR over the past five years.
Survey results indicated stable promotional activity at oil change locations, with service volume consistent with both June and September of the previous year. Traffic appeared flat to slightly higher, while 82% of locations reported no increase in customers deferring oil changes due to economic conditions, an improvement from 80% in June.
For the collision repair segment, Canaccord noted industry softness but suggested Caliber’s potential IPO timing could indicate either significant market share gains or an approaching industry inflection point.
The firm highlighted that previous challenges in Driven Brands’ capital-intensive businesses like Car Wash had overshadowed strengths in its asset-light franchised Maintenance business, particularly Take 5 Oil Change, which generates superior cash flows, and suggested the company’s multiple could expand significantly with U.S. Car Wash now divested. With a market capitalization of $2.8 billion and a healthy gross profit margin of 42%, investors can access detailed financial analysis and 12+ exclusive ProTips through InvestingPro. The company is scheduled to report its next earnings on October 22, 2025.
In other recent news, Driven Brands has made significant executive changes with the appointment of Mo Khalid as Executive Vice President and Chief Operating Officer. Khalid, who was previously the Executive Vice President and President of Take 5, will be succeeded by Tim Austin in his former role. In terms of stock analysis, JPMorgan has upgraded Driven Brands from Neutral to Overweight, citing defensive demand and market share gains in the Take 5 business as key factors for the upgrade. The investment bank also raised its price target for the company to $23.00. Meanwhile, Canaccord Genuity has also shown optimism by increasing its price target for Driven Brands to $24.00, maintaining a Buy rating. This decision was influenced by a survey of oil change locations, which indicated positive consumer trends and improved business performance. These developments reflect a period of strategic changes and positive outlooks from analysts for Driven Brands.
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