Stifel analyst Chris O’Cull downgraded Mister Car Wash to Hold from Buy with a price target of $10, down from $17. The analyst is concerned about the company’s lack of earnings visibility. Recent channel checks indicate retail sales remain weak across the car wash industry, O’Cull tells investors in a research note. Mister started to call out softer retail sales on its Q1 conference call, and its performance “has remained weak,” says the analyst. He also believes the company’s earnings could be disrupted by the significant number of openings in the second half of 2022. O’Cull says a lack of catalysts may keep the shares range-bound.
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