William Blair analyst Phillip Blee has maintained their bullish stance on HLLY stock, giving a Buy rating on March 6.
Phillip Blee has given his Buy rating due to a combination of factors that highlight Holley’s strong financial performance and strategic initiatives. The company reported impressive fourth-quarter results, with sales surpassing consensus expectations by $2 million, and an adjusted EBITDA margin exceeding estimates by 300 basis points. Additionally, Holley’s earnings per share of $0.11 were significantly higher than the anticipated $0.01.
Management’s guidance for the full year reflects a positive outlook, with expected sales between $580 million and $600 million and an adjusted EBITDA margin that is projected to be 110 basis points above consensus. Despite challenges such as macroeconomic pressures and retailer destocking, Holley has shown resilience through improved order volumes and growth in direct-to-consumer and national retailer sales. The company’s efforts to optimize operations and refine its product portfolio are beginning to yield results, as evidenced by the increase in adjusted gross and EBITDA margins. These factors, along with a solid free cash flow position and reduced net leverage, underpin Blee’s confidence in Holley’s future performance.
Blee covers the Consumer Cyclical sector, focusing on stocks such as Somnigroup International, Advance Auto Parts, and AutoZone. According to TipRanks, Blee has an average return of 10.2% and a 55.00% success rate on recommended stocks.
In another report released on March 6, Telsey Advisory also maintained a Buy rating on the stock with a $4.50 price target.
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