In a report released today, David Manthey from Robert W. Baird downgraded Hillman Solutions (HLMN – Research Report) to a Hold, with a price target of $9.00.
David Manthey has given his Hold rating due to a combination of factors affecting Hillman Solutions. The company faces significant exposure to tariffs, particularly because a substantial portion of its revenue is tied to products sourced from China. This exposure is compounded by inefficiencies in passing through these costs to customers, which could lead to margin compression and timing gaps in profitability.
Additionally, there is uncertainty in the market due to potential resistance from retailers against tariff-related price increases. The strategic pivot towards RDS, while promising in the long term, presents near-term challenges as it may lead to attrition in volumes and foot traffic. These factors, combined with an uncertain economic environment, suggest limited upside potential for the stock, justifying the Hold rating for the time being.
Manthey covers the Industrials sector, focusing on stocks such as Beacon Roofing Supply, Clean Harbors, and Hillman Solutions. According to TipRanks, Manthey has an average return of 14.2% and a 63.05% success rate on recommended stocks.
In another report released on April 8, Barclays also maintained a Hold rating on the stock with a $8.00 price target.