In a report released yesterday, Brian McNamara from Canaccord Genuity maintained a Buy rating on Hillman Solutions (HLMN – Research Report), with a price target of $13.00.
Brian McNamara has given his Buy rating due to a combination of factors that suggest Hillman Solutions is well-positioned for future growth. Primarily, the company is significantly influenced by potential recovery in the housing market, as 75% of its revenue stems from repair and remodeling activities, which are expected to increase with a decrease in interest rates. Furthermore, McNamara’s survey of 100 Hillman customer locations revealed that most sites reported consistent or increased business activity, indicating a positive trend despite seasonal slowdowns.
Additionally, the company’s recent acquisitions, such as Koch and Intex, are progressing as expected, with plans for future expansion. Even though lumber prices have risen, which could impact project initiation, Hillman is likely to benefit from lumber price deflation, particularly in deck screws. These factors, combined with the potential impact of lower interest rates on consumer confidence, support McNamara’s Buy rating and the target price of $13.
According to TipRanks, McNamara is a 3-star analyst with an average return of 1.0% and a 52.51% success rate. McNamara covers the Consumer Cyclical sector, focusing on stocks such as SharkNinja, Inc., Traeger, and Newell Brands.