Canaccord Raises Driven Brands Target to $18 on 2027 Outlook

Canaccord Genuity raised its price target on Driven Brands (NASDAQ: DRVN) from $17 to $18 while maintaining a Buy rating, pointing to a positive 2027 EBITDA outlook despite near-term headwinds from oil change deferrals and financial restatement costs. The upward revision arrives as the automotive services company navigates consumer spending shifts that have temporarily slowed routine maintenance schedules.

"Canaccord Genuity raised its price target on Driven Brands from $17 to $18 while keeping a Buy rating," according to an Investing.com report.

Maintenance Deferrals Rise in Dealer Survey

Canaccord's proprietary field checks underscore the near-term pressures facing the automotive aftermarket. A recent survey of 80 oil change locations and 40 collision stores revealed that 29% of surveyed outlets experienced oil change deferrals by consumers.

This marks the highest deferral rate recorded across the past five surveys conducted by the firm. The figure represents an increase of 11 percentage points compared to the same period year-over-year, indicating that vehicle owners are stretching out routine service intervals amid broader economic uncertainty.

Q2 Financial Performance and Earnings Miss

The rising deferral rates coincide with recent financial results from Driven Brands. During the company's second-quarter performance period, revenue reached $507.4 million, representing a 6.8% increase year-over-year.

However, profitability fell short of Wall Street forecasts. Driven Brands reported an adjusted diluted earnings per share of $0.23, missing consensus analyst expectations of $0.26 by three cents.

How Restatement Costs Shape the Long-Term Model

In response to the shifting near-term data, Canaccord adjusted its financial models downward for the third and fourth quarters, factoring in the impact of higher oil change deferral rates on store-level throughput.

At the same time, the firm lifted its longer-term earnings trajectory, raising its 2027 EBITDA expectations. This optimism is balanced against anticipated financial headwinds in the near term, with Canaccord projecting that one-time costs associated with the company's 2026 financial restatement will reach the high end of a management-guided range of $35 million to $45 million.

Outlook for Driven Brands

The divergence between near-term pressures and long-term valuation targets highlights the complexities of investing in the franchised automotive service sector. While consumer friction around basic maintenance and corporate remediation expenses weigh on current cash flows, equity analysts are looking toward 2027 as a period where operational normalization and network scale are expected to drive stronger earnings growth across Driven Brands' portfolio of collision, glass, and oil change banners.