Fox Factory Holding (FOXF – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Bret Jordan from Jefferies maintained a Buy rating on the stock and has a $38.00 price target.
Bret Jordan has given his Buy rating due to a combination of factors including Fox Factory Holding’s ability to offset cyclical headwinds with the addition of Marucci volumes and a modest recovery in the bike segment. The company’s Q4 adjusted earnings per share exceeded both estimates and consensus, indicating resilience in challenging market conditions. Furthermore, the anticipated recovery in the Specialty Sports Group, driven by improving bike demand and less cyclical Marucci volumes, supports the high end of the company’s guidance for 2025.
Bret Jordan also highlights the $25 million in cost-saving initiatives that are expected to drive margin expansion in 2025. These initiatives, along with the potential for continued growth in Marucci, provide a positive outlook for the company’s financial performance. Despite challenges in the Aftermarket Applications Group and Powered Vehicles Group, the stabilization in higher-end vehicle demand and improving chassis supply are expected to contribute to a rebound in the second half of the year.
In another report released today, Stifel Nicolaus also maintained a Buy rating on the stock with a $40.00 price target.