Holley, the Consumer Cyclical sector company, was revisited by a Wall Street analyst yesterday. Analyst Brian McNamara from Canaccord Genuity maintained a Buy rating on the stock and has a $5.00 price target.
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Brian McNamara has given his Buy rating due to a combination of factors, primarily focusing on Holley’s recent pricing strategy and market response. The company announced an 8.75% price increase, effective in June, which was communicated well in advance to the market. This strategic move did not significantly impact demand among enthusiasts, as confirmed by a survey of 35 channel partners, including dealers and resellers. The advance notice of the price increase helped strengthen relationships with larger resellers and retailers, who appreciated the transparency and were better positioned to manage their inventories.
Additionally, McNamara noted that Holley’s exposure to China sourcing, if disclosed, could positively influence the stock’s performance by alleviating market concerns. The analyst also revised the Q2 organic growth estimate from 0.3% to 2.3%, based on the survey findings, indicating sustainable growth. These factors, combined with the company’s ability to maintain demand despite price hikes, underpin McNamara’s Buy rating and a price target of $5.