Mister Car Wash ‘well positioned for above-average share gains’ – Guggenheim
2023.06.29 11:54
© Reuters. Mister Car Wash (MCW) ‘well positioned for above-average share gains’ – Guggenheim
Mister Car Wash, Inc. (NYSE:) was initiated with a Buy rating and $11 price target at Guggenheim on Thursday.
The firm’s analysts told investors in a note that they have a constructive secular view. They “believe that accelerated ‘greenfield’ expansion of the superior ‘conveyorized format will create significant incremental demand while capital intensity and required local market density will drive consolidation within the channel.”
On MCW, the firm stated that it is “well positioned for above-average share gains.”
The analysts noted factors such as the company’s scale, well-regarded national brand, history of innovation, sizable membership program, and robust $2 million exterior express AUV as reasons they are bullish on the stock.
“Importantly, MCW has struck a better balance between efficiency and experience by utilizing data analytics to improve labor scheduling and reduce staffing by 6%, or one person per car wash, strengthening the case for eventual EBITDA margin expansion,” they added.