Driven Brands drives higher as analysts applaud earnings beat (NASDAQ:DRVN)

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Pushed Brand names (NASDAQ:DRVN +6.3%) is accelerating on Thursday afternoon just after a delayed stock response to its initially quarter earnings effects.

The parent business of MAACO, Meineke Automobile Care Facilities, and other car-similar service vendors claimed a defeat on prime and bottom lines for the quarter, though noting a surge in same-retail store profits amid a sizeable footprint growth. Self-confident commentary on functionality for the coming quarters also appeared to persuade the share price reaction pursuing the print.

“So far in the second quarter, we continue to be delighted with our efficiency,” CFO Tiffany Mason explained to analysts on Wednesday evening. “We are concentrated on our confirmed formula with a system that is scaled and diversified as formerly simple, we incorporate new merchants, we expand exact same-keep gross sales and we deliver secure margins.”

The optimistic commentary from administration is becoming reciprocated with glowing evaluations from analysts as nicely. Between these analysts, Baird senior analyst Peter S. Benedict was specifically bullish.

“In limited, we imagine [Driven Brands] (DRVN) is very well positioned in present day challenging macro/paying backdrop specified the company’s diversified portfolio of mostly requirements-based mostly, non-discretionary expert services and established observe record of marketplace share gains,” he wrote. “The inventory appears to be undervalued to us, especially thinking of [Driven Brands’] (DRVN) capacity to compound adj-EBITDA at a ~20% rate over the up coming 5 years.”

He extra that the company’s “labor-light” small business product merged with supply chain aggressive positive aspects need to sustain the company’s gains for the complete calendar year. Benedict reiterated his Outperform ranking on shares and assigned a $40 price target to the stock.

Shares obtained almost 7% about an hour prior to Thursday’s marketplace shut, getting sharply from a flat open.

Dig into the firm’s valuation.

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