David Lantz, an analyst from Wells Fargo, has initiated a new Buy rating on Dorman Products (DORM).
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David Lantz has given his Buy rating due to a combination of factors that highlight Dorman Products’ strong position in the automotive aftermarket. The company is recognized for its innovative approach, which has led to the introduction of a significant number of new aftermarket parts, positioning it to grow at a rate double that of the industry. This innovation, coupled with the underlying drivers such as an aging car population, supports sustainable growth in its light-duty segment.
Moreover, Dorman Products is poised for improvement in its adjusted EBIT percentage through strategic initiatives like tariff-driven price adjustments and productivity enhancements. Although the heavy-duty and specialty vehicle segments face short-term challenges, Dorman’s market share gains and strategic initiatives provide a solid foundation for long-term recovery. The stock’s current valuation, trading below its historical averages, offers a compelling entry point, further supported by the company’s robust sales and EBIT growth compared to its peers.
In another report released on August 12, Barrington also maintained a Buy rating on the stock with a $150.00 price target.