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

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Driven Models (NASDAQ:DRVN +6.3%) is accelerating on Thursday afternoon soon after a delayed stock response to its first quarter earnings benefits.

The parent corporation of MAACO, Meineke Vehicle Treatment Centers, and other auto-related support providers described a beat on leading and bottom traces for the quarter, though noting a surge in similar-retail store product sales amid a important footprint enlargement. Confident commentary on efficiency for the coming quarters also appeared to inspire the share price tag reaction following the print.

“So far in the 2nd quarter, we go on to be pleased with our functionality,” CFO Tiffany Mason explained to analysts on Wednesday evening. “We are focused on our proven formula with a system that is scaled and diversified as formerly uncomplicated, we include new shops, we improve very same-retailer gross sales and we supply stable margins.”

The optimistic commentary from management is currently being reciprocated with glowing evaluations from analysts as perfectly. Among the these analysts, Baird senior analyst Peter S. Benedict was specially bullish.

“In quick, we consider [Driven Brands] (DRVN) is nicely positioned in present day hard macro/paying out backdrop given the firm’s diversified portfolio of mostly desires-primarily based, non-discretionary products and services and tested keep track of report of market share gains,” he wrote. “The stock looks undervalued to us, especially contemplating [Driven Brands’] (DRVN) ability to compound adj-EBITDA at a ~20% tempo over the subsequent 5 several years.”

He included that the company’s “labor-light” organization design put together with provide chain aggressive positive aspects ought to sustain the company’s gains for the total yr. Benedict reiterated his Outperform score on shares and assigned a $40 price tag concentrate on to the stock.

Shares gained virtually 7% about an hour prior to Thursday’s market near, gaining sharply from a flat open.

Dig into the firm’s valuation.

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