Canaccord Raises Driven Brands Target to $18 Amid Diverging Street Views
Driven Brands sees a higher price target from Canaccord Genuity, though the move contrasts with recent cuts from other major banks.
Driven Brands Holdings (NASDAQ: DRVN) received a price target increase from Canaccord Genuity Group, which lifted its estimate from $17.00 to $18.00. The brokerage maintains a buy rating on the stock, suggesting a potential upside of approximately 48.6% from the company’s recent close. This assessment places Canaccord in a minority position among recent analysts, as several peers have recently lowered their targets.
The stock traded at $12.12 on Thursday, reflecting a 3.3% decline. Trading volume of 1,199,106 shares fell below the average of 1,424,986. Driven Brands operates with a debt-to-equity ratio of 1.99 and a current ratio of 1.47. The company’s market capitalization stands at $2.00 billion, with a P/E ratio of 11.63 and a beta of 0.94.
Recent Analyst Actions Show Divergence
Other institutions have shown less optimism. Morgan Stanley set a $14.00 target on August 7, while Royal Bank of Canada cut its target from $17.00 to $16.00 with an outperform rating. BMO Capital Markets reduced its target from $18.00 to $14.00 in May, assigning a market perform rating. Piper Sandler raised its target from $11.00 to $13.00 with a neutral stance. Benchmark reiterated a buy rating without a specific target change noted in the data.
According to MarketBeat data, the consensus rating for Driven Brands is Moderate Buy. The consensus price target is $16.43, based on two Strong Buy, six Buy, seven Hold, and one Sell ratings. This consensus figure sits below Canaccord’s new target but above the targets set by Morgan Stanley and BMO.
Quarterly Results and Financial Metrics
Driven Brands reported earnings per share of $0.29 for the quarter ended July 27. The company achieved a net margin of 8.61% and a return on equity of 24.13%. Sell-side analysts currently expect the company to post an EPS of $1.12 for the current fiscal year. The stock has a 50-day moving average of $13.85 and a 200-day moving average of $13.13.
Institutional Ownership Remains High
Institutional investors hold 77.08% of the company’s shares. Several firms increased their stakes recently. Osaic Holdings Inc. grew its position by 82.1% in Q2, holding 2,087 shares. EverSource Wealth Advisors LLC raised its holdings by 744.6% to 2,103 shares. Comerica Bank boosted its position by 328.8% to 2,933 shares, while Larson Financial Group LLC lifted its stake by 1,347.7% to 3,822 shares. SJS Investment Consulting Inc. increased its holdings by 420.2% to 4,500 shares.
