Goldman Picks ValvolineInc. (VVV) as a Buy, Targets $45

On June 3, Goldman Sachs initiated coverage on Valvoline (NYSE:VVV) and gave it a Buy rating, setting a price target of $45. They see the company as a top performer in a scattered industry where people don’t get to skip maintenance, meaning demand stays steady, recession or not.

Valvoline’s fundamentals back that up. A Piotroski Score of 9, nearly 10% revenue growth over the past year, and limited exposure to tariff fallout all play into Goldman’s bullish call.

Goldman Sachs analysts believe the company is under valuation pressure. They attribute that to some “narrative headwinds,” basically investor skepticism, which they believe will fade. If that happens, the valuation multiple could get a bump.

Goldman also noted Valvoline’s recent refranchising efforts as a smart long-term move, even using conservative math. And there's a fresh acquisition in the mix: Breeze Autocare. If Valvoline brings Breeze’s operations up to par with its own store performance, Goldman estimates the deal could pay off at a multiple near 5x within three years.

On top of that, same-store sales came in better than expected for Q2 2025. Goldman expects that momentum to hold steady into the next quarter. Their read is simple: Valvoline looks undervalued, well-managed, and positioned to benefit from both market consistency and internal execution.

We recently shared two hedge funds' comments on VVV. One of them believes "the company will benefit from increased market share gains, driven by both corporate and franchise expansion, growing its scale, accelerating growth and increasing its moat."

While we acknowledge the potential of VVV as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None.