William Blair analyst Phillip Blee has maintained their bullish stance on HLLY stock, giving a Buy rating on October 31.
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Phillip Blee has given his Buy rating due to a combination of factors that highlight Holley’s strong financial performance and promising future prospects. The company reported impressive third-quarter results, with sales exceeding expectations and substantial improvements in gross margins. This performance has led management to revise their full-year guidance upwards, indicating potential for further growth in the fourth quarter, despite a slight deceleration compared to previous quarters. The decision to forego a marketing event in favor of enhancing margins suggests a strategic focus on profitability.
Holley’s multiyear transformation efforts have begun to yield tangible results, with initiatives aimed at refining their product offerings and investing in technology and operational efficiencies gaining traction among retail partners and consumers. These efforts are expected to support higher-than-targeted gross and EBITDA margins by 2025. Looking ahead, the company anticipates continued momentum into 2026, with projected sales growth, improved EBITDA margins, and significant EPS growth. Additionally, a reduction in debt leverage is anticipated, which should enhance the company’s financial stability and attractiveness to investors.
In another report released on October 31, Telsey Advisory also maintained a Buy rating on the stock with a $3.50 price target.