In a report released today, Reuben Garner from Benchmark Co. maintained a Buy rating on Hillman Solutions (HLMN – Research Report), with a price target of $16.00.
Reuben Garner has given his Buy rating due to a combination of factors influencing Hillman Solutions’ promising outlook. The company reported robust results for the fourth quarter of 2024, aligning closely with consensus expectations for revenue, EBITDA, and EPS. Despite challenges such as a muted repair and remodel market and pricing pressures that slightly reduced gross margins, Hillman managed to expand its adjusted EBITDA margin through sustained operational efficiencies and a favorable mix.
Looking forward to fiscal year 2025, Hillman Solutions has provided guidance that indicates growth, with net sales expected to rise between $1.495 billion to $1.575 billion and adjusted EBITDA projected to increase by approximately 9.6% at the midpoint. The company has already secured significant sales growth through contributions from acquisitions and new business commitments. Garner sees potential for further outperformance if market conditions improve, especially if the repair and remodel market rebounds. Additionally, Hillman’s strong business model and margin profile are highlighted as attractive attributes, reinforcing the Buy rating.
In another report released today, Stifel Nicolaus also maintained a Buy rating on the stock with a $16.00 price target.