Morgan Stanley Lowers Driven Brands (NASDAQ:DRVN) Price Target to $16.00

Key Points

• Morgan Stanley lowered its price target on Driven Brands to $16 from $17 and kept an equal weight rating, implying about 22% upside from the stock’s current price.
• Driven Brands’ latest quarter showed a mixed result: EPS of $0.34 beat estimates, but revenue of $259.6 million missed expectations by a wide margin.
• Analysts remain divided overall, with the stock carrying a Moderate Buy consensus and an average target price of $18.44, while shares traded around $13.07 on Wednesday.

Driven Brands (NASDAQ:DRVN - Get Free Report) had its price objective cut by investment analysts at Morgan Stanley from $17.00 to $16.00 in a report issued on Wednesday,Benzinga reports. The brokerage currently has an "equal weight" rating on the stock. Morgan Stanley's price target would suggest a potential upside of 22.42% from the stock's current price.

Several other analysts have also recently weighed in on the stock. William Blair cut shares of Driven Brands from an "outperform" rating to a "hold" rating in a research note on Wednesday, April 22nd. Weiss Ratings reiterated a "sell (d)" rating on shares of Driven Brands in a report on Friday, March 27th. Zacks Research upgraded shares of Driven Brands from a "strong sell" rating to a "hold" rating in a report on Thursday, March 19th. BTIG Research decreased their target price on shares of Driven Brands from $21.00 to $17.00 and set a "buy" rating for the company in a research report on Wednesday. Finally, The Goldman Sachs Group reissued a "neutral" rating on shares of Driven Brands in a research report on Wednesday, April 22nd. One investment analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $18.44.

Driven Brands Trading Down 1.2%

Shares of DRVN stock traded down $0.16 during trading hours on Wednesday, reaching $13.07. The company had a trading volume of 887,405 shares, compared to its average volume of 1,738,767. The firm has a market cap of $2.15 billion, a price-to-earnings ratio of -10.54 and a beta of 0.97. Driven Brands has a 1-year low of $9.80 and a 1-year high of $19.74. The company has a debt-to-equity ratio of 2.44, a current ratio of 0.90 and a quick ratio of 0.80. The company has a 50 day moving average of $12.36 and a 200 day moving average of $14.00.

Driven Brands (NASDAQ:DRVN - Get Free Report) last announced its quarterly earnings data on Tuesday, May 19th. The company reported $0.34 earnings per share for the quarter, beating the consensus estimate of $0.24 by $0.10. Driven Brands had a positive return on equity of 25.31% and a negative net margin of 9.14%.The company had revenue of $259.60 million during the quarter, compared to analysts' expectations of $454.91 million. Driven Brands has set its FY 2026 guidance at 1.150-1.250 EPS. On average, equities research analysts anticipate that Driven Brands will post 1.14 EPS for the current year.

Institutional Investors Weigh In On Driven Brands

A number of large investors have recently modified their holdings of the stock. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its stake in Driven Brands by 4.4% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 35,597 shares of the company's stock valued at $610,000 after acquiring an additional 1,493 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in shares of Driven Brands by 22.7% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 139,321 shares of the company's stock worth $2,388,000 after acquiring an additional 25,806 shares during the last quarter. New York State Common Retirement Fund lifted its holdings in shares of Driven Brands by 10.0% in the 2nd quarter. New York State Common Retirement Fund now owns 16,511 shares of the company's stock worth $290,000 after acquiring an additional 1,500 shares during the last quarter. Arrowstreet Capital Limited Partnership lifted its holdings in shares of Driven Brands by 95.4% in the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 255,156 shares of the company's stock worth $4,481,000 after acquiring an additional 124,556 shares during the last quarter. Finally, EverSource Wealth Advisors LLC lifted its holdings in shares of Driven Brands by 744.6% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 2,103 shares of the company's stock worth $37,000 after acquiring an additional 1,854 shares during the last quarter. Institutional investors own 77.08% of the company's stock.

More Driven Brands News

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

• Positive Sentiment: Driven Brands reported adjusted earnings of $0.34 per share, beating the $0.24 consensus estimate, which shows stronger profitability than Wall Street expected. Driven Brands Holdings Inc. NASDAQ: DRVN Q4 2025 Earnings Call Transcript
• Positive Sentiment: The company said it expects 2026 revenue of $1.95 billion-$2.05 billion and aims to lower leverage to 3x by year-end, signaling a focus on balance-sheet improvement and steady growth. Driven Brands expects $1.95B-$2.05B revenue in 2026 while targeting 3x net leverage by year-end
• Neutral Sentiment: BTIG lowered its price target on Driven Brands to $17 from $21, but kept a Buy rating, suggesting analysts still see upside despite trimming expectations. BTIG Research note via Benzinga
• Negative Sentiment: Quarterly revenue of $259.6 million missed estimates by a wide margin versus the $454.9 million forecast, raising concerns about top-line momentum. Driven Brands earnings report
• Negative Sentiment: Full-year 2026 EPS guidance of $1.15-$1.25 was slightly below the market’s $1.21 estimate at the midpoint, which may be limiting enthusiasm after the earnings beat. Driven Brands stock overview

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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