Driven Brands (NASDAQ:DRVN) Given New $17.00 Price Target at Royal Bank Of Canada

Key Points

• Royal Bank of Canada cut its price target on Driven Brands from $18 to $17 while keeping an outperform rating, implying about 29.9% upside from the current share price.
• Driven Brands shares were down 5.3% to about $13.09, leaving the stock well below its consensus analyst target of $17.18 and its 52-week high of $19.74.
• The company recently beat quarterly earnings expectations, posting EPS of $0.30 versus $0.25 expected and revenue of $484.4 million above estimates, though revenue still declined 6.2% year over year.

Driven Brands (NASDAQ:DRVN - Get Free Report) had its price objective dropped by stock analysts at Royal Bank Of Canada from $18.00 to $17.00 in a report issued on Thursday, Marketbeat Ratings reports. The brokerage currently has an "outperform" rating on the stock. Royal Bank Of Canada's target price would suggest a potential upside of 29.86% from the company's current price.

Several other research analysts have also commented on the company. Morgan Stanley reduced their price target on Driven Brands from $17.00 to $16.00 and set an "equal weight" rating for the company in a research report on Wednesday, May 20th. BMO Capital Markets dropped their price objective on Driven Brands from $18.00 to $14.00 and set a "market perform" rating on the stock in a research report on Thursday, May 21st. Freedom Capital upgraded Driven Brands to a "strong-buy" rating in a research note on Monday, March 23rd. BTIG Research reissued a "buy" rating and set a $17.00 price target on shares of Driven Brands in a research report on Friday. Finally, Zacks Research upgraded shares of Driven Brands from a "strong sell" rating to a "hold" rating in a report on Thursday, March 19th. Two research analysts have rated the stock with a Strong Buy rating, five have issued a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, Driven Brands has an average rating of "Moderate Buy" and a consensus price target of $17.18.

Driven Brands Stock Down 5.3%

Shares of DRVN traded down $0.74 during midday trading on Thursday, reaching $13.09. 142,441 shares of the stock were exchanged, compared to its average volume of 1,703,656. The company has a market capitalization of $2.16 billion, a P/E ratio of 15.77 and a beta of 0.97. The company has a current ratio of 0.75, a quick ratio of 0.67 and a debt-to-equity ratio of 2.45. Driven Brands has a 52 week low of $9.80 and a 52 week high of $19.74. The company's 50 day moving average is $13.11 and its two-hundred day moving average is $13.93.

Driven Brands (NASDAQ:DRVN - Get Free Report) last released its quarterly earnings data on Thursday, June 11th. The company reported $0.30 earnings per share for the quarter, topping analysts' consensus estimates of $0.25 by $0.05. The company had revenue of $484.44 million during the quarter, compared to analyst estimates of $480.84 million. Driven Brands had a net margin of 6.55% and a return on equity of 25.83%. The firm's revenue for the quarter was down 6.2% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.27 earnings per share. On average, sell-side analysts anticipate that Driven Brands will post 1.04 earnings per share for the current year.

Institutional Investors Weigh In On Driven Brands

A number of large investors have recently made changes to their positions in the stock. Boston Partners raised its stake in Driven Brands by 1,301.0% in the 4th quarter. Boston Partners now owns 3,426,388 shares of the company's stock worth $50,783,000 after acquiring an additional 3,181,812 shares during the last quarter. Rubric Capital Management LP acquired a new position in shares of Driven Brands in the first quarter valued at about $37,830,000. AustralianSuper Pty Ltd acquired a new position in shares of Driven Brands in the third quarter valued at about $44,645,000. Simcoe Capital Management LLC purchased a new position in shares of Driven Brands in the third quarter worth about $33,911,000. Finally, North Peak Capital Management LLC raised its stake in shares of Driven Brands by 37.3% in the fourth quarter. North Peak Capital Management LLC now owns 3,990,850 shares of the company's stock worth $59,144,000 after purchasing an additional 1,083,896 shares during the last quarter. 77.08% of the stock is owned by hedge funds and other institutional investors.

More Driven Brands News

Here are the key news stories impacting Driven Brands this week:

• Positive Sentiment: Driven Brands beat Q1 expectations, reporting $0.30 in EPS versus the $0.25 consensus and revenue of $484.4 million above estimates, which supports the recent rebound in sentiment. Driven Brands Holdings Inc. Reports First Quarter 2026 Results
• Positive Sentiment: Take 5 Oil Change remains a bright spot, helping drive same-store sales growth, higher system-wide sales, and stronger EBITDA, while BTIG reaffirmed its buy rating and set a $17 price target, implying meaningful upside from current levels. BTIG Reaffirms Buy Rating on Driven Brands
• Neutral Sentiment: Management kept its overall outlook unchanged, which suggests the quarter was solid but not strong enough to prompt a more aggressive guidance raise. Driven Brands Tops Earnings Forecasts but Revenue Falls Short as Outlook Remains Unchanged (DRVN)
• Neutral Sentiment: Analysts and earnings-call coverage highlighted ongoing deleveraging efforts and the company’s focus on Take 5 growth, but also noted softer traffic and a cautious second-quarter outlook. DRVN Q1 Earnings Call Keeps Focus on Take 5, Deleveraging
• Negative Sentiment: Despite the earnings beat, revenue still declined 6.2% year over year and bears remain focused on high leverage, margin pressure, customer churn, and inflation-sensitive demand, which may limit further upside. Driven Brands Looks Better, But I'm Not Ready To Buy

Driven Brands Company Profile

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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