Piper Sandler raises Valvoline stock price target to $50 on growth outlook

Investing.com - Piper Sandler raised its price target on Valvoline (NYSE:VVV) to $50.00 from $44.00 on Monday, while maintaining an Overweight rating on the stock. The company, currently trading at $39.04 with a market capitalization of $4.96 billion, has shown robust revenue growth of 7.53% over the last twelve months.

The research firm cited expectations for "healthy EPS/EBITDA growth reacceleration" in fiscal years 2026 and 2027 as Valvoline moves past recent headwinds that have affected the company’s performance over the last 12 months. According to InvestingPro analysis, the company maintains a favorable PEG ratio of 0.26, suggesting attractive valuation relative to its growth prospects.

According to Piper Sandler, these headwinds included refranchising transactions and SG&A investments related to modernizing the company’s technology architecture, which are now winding down as fiscal year 2025 concludes at the end of September.

The firm noted that Valvoline shares currently trade at a discount compared to both their historical valuation and consumer growth peers, potentially presenting "an attractive entry point" for investors. This assessment aligns with InvestingPro’s Fair Value analysis, which suggests the stock is currently undervalued. The platform offers 7 additional key insights about Valvoline’s financial health, which received a "GOOD" overall rating.

Piper Sandler also highlighted that both Valvoline’s CEO and CFO have purchased company shares on the open market over the past 3.5 months, and mentioned that the company will be participating in Piper Sandler’s Growth Frontiers conference in Nashville this week. Trading at a P/E ratio of 17.93, the stock’s valuation metrics and detailed analysis are available in the comprehensive Pro Research Report on InvestingPro.

In other recent news, Valvoline Inc . reported its third-quarter 2025 earnings, surpassing analysts’ expectations. The company achieved an earnings per share (EPS) of $0.47, exceeding the forecasted $0.45, and reported revenue of $439 million, which was higher than the anticipated $436.74 million. Additionally, Valvoline announced an amendment to its merger agreement concerning the acquisition of OC IntermediateCo, the parent company of Breeze Autocare and operator of Oil Changers quick lube stores. The amendment extends the transaction’s termination date to November 15, 2025, or until all closing conditions are met. This extension is in response to a request for additional information from the U.S. Federal Trade Commission, which is reviewing the proposed merger. Valvoline continues discussions with the FTC to address regulatory concerns. These developments highlight Valvoline’s recent financial performance and ongoing strategic efforts.

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