Bank of America Initiates Coverage on Driven Brands (NASDAQ:DRVN)

Key Points

• Bank of America initiated coverage of Driven Brands with an “underperform” rating and a $12 price target, implying roughly 2% downside from the stock’s reported $12.24 price.
• Analyst sentiment remains mixed but leans positive overall: Driven Brands has a “Moderate Buy” consensus rating and an average price target of $16.34, despite Bank of America’s bearish view.
• Driven Brands reported quarterly EPS of $0.29, with an 8.61% net margin and 24.13% return on equity; institutional investors own approximately 77.08% of the company’s shares.

Research analysts at Bank of America started coverage on shares of Driven Brands (NASDAQ:DRVN - Get Free Report) in a research note issued on Thursday. The brokerage set an "underperform" rating and a $12.00 price target on the stock. Bank of America's price target would indicate a potential downside of 1.96% from the company's current price.

Several other research analysts have also recently weighed in on DRVN. Royal Bank Of Canada cut their price target on shares of Driven Brands from $17.00 to $16.00 and set an "outperform" rating on the stock in a report on Friday, August 7th. Canaccord Genuity Group set a $17.00 price objective on shares of Driven Brands in a research note on Friday, August 7th. The Goldman Sachs Group reissued a "neutral" rating and set a $14.75 target price on shares of Driven Brands in a research report on Wednesday, May 20th. Morgan Stanley set a $14.00 target price on Driven Brands in a research note on Friday, August 7th. Finally, Benchmark reaffirmed a "buy" rating on shares of Driven Brands in a research report on Tuesday, May 26th. Two research analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, Driven Brands has an average rating of "Moderate Buy" and an average target price of $16.34.

Driven Brands Stock Down 2.3%

NASDAQ DRVN traded down $0.29 on Thursday, reaching $12.24. The company had a trading volume of 141,668 shares, compared to its average volume of 1,418,468. The company has a quick ratio of 1.33, a current ratio of 1.47 and a debt-to-equity ratio of 1.99. The company's fifty day moving average is $13.85 and its 200 day moving average is $13.13. Driven Brands has a 52-week low of $9.80 and a 52-week high of $18.60. The stock has a market capitalization of $2.02 billion, a P/E ratio of 11.79 and a beta of 0.94.

Driven Brands (NASDAQ:DRVN - Get Free Report) last posted its quarterly earnings data on Monday, July 27th. The company reported $0.29 earnings per share (EPS) for the quarter. Driven Brands had a net margin of 8.61% and a return on equity of 24.13%. Sell-side analysts anticipate that Driven Brands will post 1.12 earnings per share for the current fiscal year.

Institutional Trading of Driven Brands

A number of large investors have recently added to or reduced their stakes in the stock. Osaic Holdings Inc. boosted its stake in Driven Brands by 82.1% in the second quarter. Osaic Holdings Inc. now owns 2,087 shares of the company's stock valued at $37,000 after acquiring an additional 941 shares during the last quarter. EverSource Wealth Advisors LLC increased its stake in shares of Driven Brands by 744.6% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 2,103 shares of the company's stock worth $37,000 after purchasing an additional 1,854 shares during the last quarter. Comerica Bank increased its stake in shares of Driven Brands by 328.8% during the 4th quarter. Comerica Bank now owns 2,933 shares of the company's stock worth $43,000 after purchasing an additional 2,249 shares during the last quarter. Larson Financial Group LLC raised its holdings in shares of Driven Brands by 1,347.7% in the 4th quarter. Larson Financial Group LLC now owns 3,822 shares of the company's stock worth $57,000 after purchasing an additional 3,558 shares during the period. Finally, SJS Investment Consulting Inc. raised its holdings in shares of Driven Brands by 420.2% in the 1st quarter. SJS Investment Consulting Inc. now owns 4,500 shares of the company's stock worth $57,000 after purchasing an additional 3,635 shares during the period. Hedge funds and other institutional investors own 77.08% of the company's stock.

About Driven Brands

Driven Brands Holdings Inc NASDAQ: DRVN is a leading North American provider of automotive aftermarket services, operating through a network of franchised and company-owned locations. The company's platform encompasses a diverse portfolio of car care and maintenance brands, including Meineke Car Care Centers, Maaco Collision Repair & Auto Painting, Take 5 Oil Change, and Carstar Collision Repair. Driven Brands delivers a full range of services from routine maintenance and oil changes to collision repair, paint protection, and vehicle customization.

Headquartered in Charlotte, North Carolina, Driven Brands serves both individual consumers and commercial clients across the United States and Canada.

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