Research Alert: CFRA Maintains Hold Opinion On Shares Of Valvoline Inc.

-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

We maintain our 12-month target of $38, based on a P/E of 17.3x our FY 27 (Sep.) EPS estimate, a justified discount to the stock's 10-year average forward P/E of 19.2x. Following VVV's earnings release, we are maintaining our estimates and our Hold opinion on the shares. Our adjusted EPS estimates remain $1.80 for FY 26 and $2.20 for FY 27. VVV posted Q2 FY 26 (Mar.) adjusted EPS of $0.41 vs. $0.34 (+21%), well ahead of the $0.34 consensus. Revenue rose 25% to $504M ($9M above consensus), and adjusted EBITDA margin expanded 60 bps to 26.5% (160 bps ahead of consensus). VVV's top-line growth should accelerate to 21% in FY 26 (vs. 6% in FY 25), driven by 162 net new stores added through its acquisition of Breeze AutoCare on December 1, 2025 (for $593M) plus SSS growth of approximately 6%. SSS growth is benefiting from a record-high average U.S. vehicle fleet, which is increasing maintenance frequency. Still, we view the stock's valuation as fair, preferring other names in the auto retail space.