Canaccord Genuity analyst Brian McNamara maintained a Buy rating on Holley yesterday and set a price target of $6.00.
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Brian McNamara has given his Buy rating due to a combination of factors that highlight Holley’s potential for growth and stability. The company is poised for a sustainable return to strong industry growth, driven by vehicle sales and a passionate customer base that is enthusiastic about car modifications. This enthusiasm is expected to support consistent top-line growth as the market for both new and used vehicles expands.
Additionally, Holley’s strategic approach to mergers and acquisitions has strengthened its position in the fragmented performance automotive aftermarket industry. The company’s focus on reducing net leverage and maintaining a robust M&A pipeline without jeopardizing financial stability further supports its growth prospects. Moreover, Holley’s ability to generate strong free cash flow, coupled with its attractive gross margin profile and capital-light business model, positions it well for future success, especially if interest rates decline. These factors, along with management’s efforts to build investor confidence, underpin McNamara’s Buy rating for Holley.
McNamara covers the Consumer Cyclical sector, focusing on stocks such as SharkNinja, Inc., Planet Fitness, and Holley. According to TipRanks, McNamara has an average return of -2.7% and a 47.86% success rate on recommended stocks.
In another report released on August 8, Benchmark Co. also upgraded the stock to a Buy with a $4.00 price target.