Investors are overlooking the growth potential of car wash chain Mister Car Wash , according to Piper Sandler.
Analyst Peter Keith upgraded the stock to overweight from neutral and raised his price target by $3 to $12.
"Unit growth slowdown is in the process of happening (due to higher interest rates, a more strained sale leaseback environment, and competitor difficulties operating a car wash chain at scale)," Keith wrote.
Shares of Mister Car Wash popped more than 10% early Monday.
Despite its pullback, and its valuation reaching an all-time low as a public company, Keith noted that Mister Car Wash is "widely viewed as a top-tier operator" by competitors, suppliers, and landlords in the industry.
Persons:
Piper Sandler, Peter Keith, Keith, CNBC's Michael Bloom