06:10 AM EDT, 05/09/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We cut our 12-month price target by $10 to $31 using an average of a forward P/E of 20.5x our FY 26 (Sep.) EPS view of $1.92 (cut $0.03) ($39), and our DCF model, assuming a terminal growth rate of 2.5%, WACC of 6.0%, and 10-year FCFF CAGR of -7.1% ($23). Macroeconomic assumptions: risk-free rate of 3.78% and equity risk premium of 4.4%, reflecting increased market volatility. We cut FY 25 EPS by $0.08 to $1.61. FQ2 sales rose 4% Y/Y (+11% considering the impact of refranchising) on strong system wide stores sales growth of 11% and system-wide same-store sales (SSS) growth of 6%. In FQ2, net store additions totaled 33, including 15 franchised and 18 company-operated. We keep our Hold rating, driven by execution risk as VVV's increased store growth requires upfront capital, and new unit maturation of roughly three to five years delays ROI visibility. Additionally, we think VVV's balance sheet and debt levels could be stronger, with current assets covering 0.7x current liabilities and net debt/EBITDA of 3.1x.