Valvoline's Management Reinforced Confidence in Top-Line Momentum, RBC Says
Valvoline's (VVV) management reinforced confidence in the company's top-line momentum and ability to navigate a higher cost environment and potential supply hindrances, RBC Capital Markets said Thursday.Management views the category as largely discretionary and believes a $100 oil change twice a year is better than costly repairs or trading up to a newer vehicle, according to the note. Importantly, April and May trends were very consistent with the March quarter, the note added.Management largely dismissed investor concerns around supply constraints, noting that they have seen no impact to date and feel well positioned moving forward given their size, scale and supplier relationships, the brokerage said.Share repurchases could also commence within the next three quarters, and the brokerage said it walked away from the meeting with increased conviction in the team's ability to beat fiscal 2026 guidance.RBC kept an outperform rating on Valvoline with a price target of $47.Price: $36.81, Change: $+0.48, Percent Change: +1.34%