Investors should see opportunity after Valvoline 's recent sell-off, Wells Fargo said.
"VVV is a high quality operator w/ category-leading comps, accelerating unit growth and an asset-light model," he said.
While electric vehicles present a long-term risk, "recent underperformance is sharp and we see opportunity."
While he noted shares trade 13% above auto service providers, they are below auto part peers, high-growth retailers and restaurants.
While Lantz admitted that the rise of electric vehicles creates a risk, Valvoline is in a better position than others.
Persons:
Valvoline, Wells Fargo, David Lantz, Lantz, — CNBC's Michael Bloom
Locations:
Aramco