William Blair analyst Phillip Blee has maintained their bullish stance on HLLY stock, giving a Buy rating yesterday.
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Phillip Blee has given his Buy rating due to a combination of factors, emphasizing that Holley turned in a robust fourth quarter marked by solid double-digit revenue growth, broad-based strength across divisions, improving gross margins, and strong free cash flow generation, even though the stock fell sharply on the results. He views the selloff as being driven more by short-term concerns—such as weather-related first-quarter softness, normalization of incentive compensation, and investor unease around upcoming ERP and warehouse system investments—than by any deterioration in the company’s underlying fundamentals.
Phillip Blee further notes that the weather headwinds were temporary, the margin impacts are largely driven by year-over-year comparison mechanics and planned brand spending, and most of the added systems-related costs will be concentrated in preparatory work ahead of a carefully phased go-live in early 2027, which should later unlock efficiency gains. With four straight quarters of core growth, continued margin expansion, steady free cash flow, and ongoing balance-sheet deleveraging, he believes the recent share-price pullback is sentiment-driven and creates an attractive entry point, especially given what he views as conservative full-year guidance that could prove beatable.
According to TipRanks, Blee is a 4-star analyst with an average return of 10.8% and a 57.14% success rate. Blee covers the Consumer Cyclical sector, focusing on stocks such as Yeti Holdings, SharkNinja, Inc., and AutoZone.
In another report released yesterday, Telsey Advisory also maintained a Buy rating on the stock with a $5.00 price target.