Valvoline (VVV) should benefit from multiple tailwinds when the retail automotive services company reports its fiscal Q2 results on May 8, beginning with the recent slide in crude oil prices, analysts at RBC Capital Markets said Tuesday.

The lower price of oil, as expected, should bolster the company's Q2 margins, the analysts said. The company similarly has little exposure to tariffs, and its acquisition of nearly 200 additional store locations in 17 states through its $625 million purchase of Breeze Autocare announced on Feb. 20 likely is "being under-appreciated" by investors, the analysts said.

Although same-store sales may come up shy of consensus forecasts during Q2, the RBC analysts said Q2 results will be negatively impacted by around 100 basis points as "the company laps over leap day." Third-party sales data also suggested a modest slowdown earlier in 2025 although more recent transaction data indicates the drop in sales bottomed out in February and has regained momentum in March and April as weather has improved, they said.

Another potential positive cited by the RBC analysts will occur when Valvoline names a successor for Mary Meixelsperger, who disclosed plans to retire from her role as chief financial officer in October. Similar searches by peer retailers typically took around five months, according to the analysts, who said they expect an update either with the Q2 results or before Q3 results are unveiled.

The incoming CFO could improve Valvoline's communication with Wall Street, which is "arguably the biggest drawback on the stock today," they said.

RBC has an outperform rating on the stock with a $48 price target.

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