Mister Car Wash ( NYSE: MCW ) shares slipped as Stifel said sales forecasts remain foggy.
“We are downgrading MCW to Hold because we are concerned about the lack of earnings visibility,” a note to clients on Friday read. “Our recent channel checks indicate retail sales remain weak across the car wash industry. Mister started to call out softer retail sales on its 1Q22 conference call, and we believe the performance has remained weak.”
The firm added that a rapid pace of expansion for the company as it seeks to open numerous locations could hit the bottom line. As such, Stifel trimmed its full-year EPS estimates to $0.36 from $0.38 and 2023 estimates to $0.37 from $0.42.
Shares of Mister Car Wash ( MCW ) slid 2.86% in premarket trading on Friday.
Consensus estimates stand at $0.37 and $0.43 for 2022 and 2023, according to SeekingAlpha data .
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Mister Car Wash downgraded at Stifel on weak sales expectation