Investors are overlooking the growth potential of car wash chain Mister Car Wash , according to Piper Sandler. Analyst Peter Keith upgraded the stock to outperform from neutral and raised his price target by $3 to $12. The firm’s new forecast suggests a 74.17% upside from Friday’s close. “We expect upside to estimates to come primarily from MCW’s rollout of Titanium 360, which should build to a ~5% comp lift for both 2024 and 2025 based on our industry research,” Keith wrote in a Monday note. Titanium 360, the company’s new premium service offering of Titanium Dioxide mist, should reach 10% of sales by the end of 2024 and 20% of sales by the end of 2025, he said. Another growth catalyst for the company is that its competitors’ openings in the car wash industry are set to slow next year, which the analyst expects will ease the pressure on industry-wide retail sales. “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. Even with Monday’s gains, the stock is trading below its June 2021 initial public offering price of $15 per share. Shares have declined nearly 17% so far this year. 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. The company has abnormally high subscription penetration amounting to 70% of sales, he said, adding that its competitors are increasingly challenged with operating at scale. — CNBC’s Michael Bloom contributed reporting.