Holley’s Strategic Resilience Amid Market Challenges Supports Buy Rating

William Blair analyst Phillip Blee has maintained their bullish stance on HLLY stock, giving a Buy rating on April 30.

Phillip Blee has given his Buy rating due to a combination of factors that reflect both the challenges and potential of Holley’s current market position. Despite mixed results in the first quarter, with sales exceeding expectations and gross margins performing well, the adjusted EBITDA margin and EPS fell short of consensus estimates. However, management’s reaffirmation of their full-year sales and earnings guidance, excluding tariff impacts, indicates confidence in the company’s ongoing momentum.
While there are uncertainties related to tariffs and consumer spending, Blee notes that Holley’s production costs are largely U.S.-based, which could mitigate some risks. Additionally, the company’s planned price increase is a strategic move to counteract tariff impacts. Despite potential short-term volatility, the improvement in Holley’s business fundamentals, such as growth in both direct and wholesale channels, suggests that management’s efforts to enhance demand and operational efficiency are gaining traction, supporting the Buy rating.

In another report released on April 30, Telsey Advisory also maintained a Buy rating on the stock with a $4.50 price target.