Mister Car Wash Inc (NYSE:MCW) shares gained more than 5% today after Piper Sandler upgraded the company to Overweight from Neutral and raised its price target to $12.00 from $9.00.
This rating change is based on the anticipation of a significant upside to estimates over the next two years. Piper Sandler expects the company's rollout of Titanium 360 to contribute to around a 5% increase in comparable sales for both 2024 and 2025.
The reduction in competitive openings in 2024 is also expected to ease pressure on Retail sales industry-wide. Positive industry feedback about Mister Car Wash further supports its potential for long-term growth.
As a result, Piper Sandler raised its 2024 EPS estimate to $0.38 (compared to the consensus of $0.35) and initiated 2025 EPS at $0.49 (compared to the consensus of $0.42).