Valvoline (VVV) is expected to report fiscal Q3 same-store sales growth of about 8% on Aug. 5, above the consensus estimate of 6.6%, as higher prices and continued traffic gains support results, RBC Capital Markets said in a Wednesday note.

RBC forecasts adjusted EBITDA of $155 million, slightly above the consensus estimate of $154 million. It also expects Valvoline to raise its fiscal 2026 guidance.

According to the note, pricing appears to have "offset" higher oil costs, while "integration costs" tied to the Breeze Auto Care acquisition have been lower than "initial expectations."

However, that strong results may not be a meaningful near-term catalyst because investor expectations already appear elevated. Appear "beat & raise" quarter could still strengthen management's credibility and support gradual valuation expansion, RBC said.

RBC has an outperform rating on the company with a price target of $47, citing its same-store sales momentum, store expansion and longer-term potential for higher margins and strong free cash flow generation.

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