Read Why Goldman Sachs Is Bearish About This Car Wash Company

by Shivani Kumaresan, Benzinga Staff Writer

June 27, 2022 6:19 AM | 1 min read | Make a Comment

Goldman Sachs analyst Kate McShane downgraded Mister Car Wash Inc MCW to Sell from Neutral and reduced the price target to $10 (18% downside) from $12.
The analyst thinks the nature of car wash demand is less defensive in the near term.
In the current inflationary environment, customers will prefer to cancel their car wash memberships in favor of washing their vehicles at home, the analyst noted.
McShane said there is a possibility of the churn rate going up as members are billed monthly and can cancel their membership at any time.
Price Action: MCW shares are trading lower by 2.44% at $11.98 in premarket on the last check Monday.