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JPMorgan analyst Christopher Horvers initiated coverage of Driven Brands with an Overweight rating and $39 price target. The company will benefit from a reopening economy in 2021 and 2022 and it has a "large whitespace" unit growth opportunity, Horvers tells investors in a research note. The timing of vaccination and lagging nature of its collision segment should result in "well-above normal" sales trends through the first half of 2022, says the analyst.

William Blair analyst Sharon Zackfia initiated coverage of Driven Brands with an Outperform rating and no price target. Driven Brands is unique in the public equity markets as a broadly diversified, asset-light franchisor in the auto services space, Zackfia tells investors in a research note. The analyst says the company has "healthy" EBITDA margins of 20%-plus alongside "substantial" cash flow generation, while driving significant value to its franchisees by leveraging its commercial relationships, data analytics and purchasing power. Zackfia projects 20% earnings growth annually, excluding potential acquisitions.

Morgan Stanley analyst Simeon Gutman initiated coverage of Driven Brands with an Equal Weight rating and $30 price target. While calling the company a "growth business with great cash-on-cash returns" and stating that he is bullish on Driven's portfolio of automotive service businesses, Gutman thinks the stock is fairly reflecting expected growth with its current multiple.

As previously reported, BofA analyst Elizabeth Suzuki initiated coverage of Driven Brands with a Buy rating and $36 price target. Driven Brands operates over 4,100 automotive service locations and is "the largest automotive franchise operator in a highly fragmented industry," said Suzuki, who views the company as an "industry consolidator with a strong brand portfolio."

BofA initiated coverage of Driven Brands with a Buy rating and $36 price target.

Piper Sandler analyst Peter Keith initiated coverage of Driven Brands with an Overweight rating and $37 price target. As the U.S. market leader in automotive aftermarket services, the company is positioned for long-term growth, Keith tells investors in a research note.

Goldman Sachs analyst Kate McShane initiated coverage of Driven Brands with a Neutral rating and $32 price target. The analyst sees a balanced risk/reward given the stock's valuation, risks emanating from a slow recovery in miles driven, muted levels of demand with a prolonged overhang from COVID-19 and the company's high leverage versus peers.

Baird analyst Peter Benedict initiated coverage of Driven Brands with an Outperform rating and $37 price target. With a proprietary data analytics and shared services platform, Driven Brands is "uniquely positioned" to take market share as it pursues a "significant whitespace opportunity" within the "highly fragmented/needs-based" automotive services sector, Benedict tells investors in a research note.