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Investing.com - Raymond James lowered its price target on Mister Car Wash Inc. (NASDAQ:MCW) to $8.00 from $10.00 on Thursday, while maintaining an Outperform rating following the company’s third-quarter results. According to InvestingPro data, MCW currently trades at a P/E ratio of 19.75 with a PEG ratio of 0.81, suggesting the stock is trading at a low P/E ratio relative to its near-term earnings growth potential.
The car wash operator delivered solid performance in the quarter, reporting comparable sales growth of 3.1%, marking its tenth consecutive quarter of positive growth. The company also achieved a 10% increase in EBITDA, which drove margin expansion of 130 basis points to a record third-quarter level. InvestingPro data shows MCW’s EBITDA stands at $284.53 million for the last twelve months, with overall revenue reaching $1.03 billion and growing at 7.21%.
Raymond James highlighted Mister Car Wash ’s subscription-based business model, with its Unlimited Wash Club representing 77% of sales, providing strong visibility into future revenue. The firm also noted that pricing carry into 2026 and continued premiumization, with the Titanium tier reaching approximately 25% of the mix compared to 24% last year, support ongoing growth.
The research firm pointed to a 40% year-to-date decline in new-builds across the industry, suggesting a more rational competitive landscape is developing. This trend could potentially benefit established operators like Mister Car Wash.
Mister Car Wash reaffirmed its 2025 guidance at the high end of its previous range, reinforcing Raymond James’ positive stance on the company’s long-term potential despite the price target reduction.
In other recent news, Mister Car Wash Inc. reported strong financial results for the third quarter of 2025. The company achieved revenue of $263 million, marking a 6% increase compared to the same period last year. Additionally, Mister Car Wash’s adjusted earnings per share (EPS) reached $0.11, exceeding analysts’ expectations of $0.1017 and demonstrating a 38% growth year-over-year. The company also reported a same-store sales growth of 3.1% for the quarter, surpassing market expectations of 1.1%. This growth was attributed to the performance of the Unlimited Wash Club subscription program and base price increases. In light of these results, BMO Capital reiterated its Outperform rating for Mister Car Wash, maintaining a price target of $9.00. These developments highlight the company’s ongoing momentum and operational effectiveness.
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