Benchmark Initiates Coverage of Driven Brands with Buy Rating and $22 Price Target

Benchmark initiates coverage of Driven Brands with a Buy rating and $22 price target. The firm sees significant growth potential for the company, citing its unique business model and strong brand recognition. The recommendation is based on the company's ability to capitalize on the growing demand for automotive services and its potential for long-term profitability.

Benchmark, a leading financial research firm, has initiated coverage of Driven Brands Holdings Inc. (DRVN) with a Buy rating and a price target of $22. The firm's positive outlook is driven by the company's unique business model and strong brand recognition, particularly in the automotive services sector.

Driven Brands Holdings Inc. is an automotive services company that provides a comprehensive range of consumer and commercial services, including paint, collision, glass, vehicle repair, oil change, maintenance, and car wash services. The company operates through various segments, including Maintenance, Car Wash, Paint, Collision & Glass, and Platform Services. Its Maintenance segment comprises the Take 5 Oil and Meineke brands, while its Car Wash segment offers express-style exterior car wash services. The Paint, Collision & Glass segment is composed of brands like CARSTAR, ABRA, Fix Auto, Maaco, Uniban, and AGN, serving both retail and commercial customers. The Platform Services segment includes businesses like 1-800 Radiator, Spire Supply, Driven Advantage, and Automotive Training Institute (ATI).

Benchmark's analysts believe that Driven Brands is well-positioned to capitalize on the growing demand for automotive services. The company's diverse range of services and strong brand recognition make it a compelling investment opportunity. Additionally, the firm expects the company to achieve long-term profitability due to its ability to adapt to market changes and its strong market position.

The Buy rating and $22 price target reflect Benchmark's confidence in Driven Brands' ability to continue its growth trajectory. The firm's analysis is based on the company's strong fundamentals, competitive advantages, and the favorable market conditions in the automotive services sector.

Investors and financial professionals should closely monitor Driven Brands' performance and consider the firm's recommendation as part of their investment strategy. However, it is essential to conduct thorough research and consult with a financial advisor before making any investment decisions.