Patrick Industries (NASDAQ: NASDAQ:PATK) has received continued support from Benchmark, with the firm reiterating a Buy rating and a $145.00 price target for the stock.
The affirmation follows last week's announcement by Patrick Industries that it has completed the acquisition of RecPro.com, an e-commerce business catering to the RV and Marine industries.
Indiana-based RecPro.com is known for its extensive online presence and a variety of interior products such as furniture. While the acquisition represents a modest ~2% of Patrick Industries' total revenues, with expected revenues for 2024 around $80 million, Benchmark views the deal positively.
The transaction is seen as a strategic fit that does not overextend the company's finances and has the potential to deliver strong returns on invested capital (ROIC).
Moreover, the integration of RecPro.com is expected to be swift, which aligns with Patrick Industries' objective to continue reducing its debt levels.
The company aims to achieve a debt-to-EBITDA ratio of less than 2.5 times, down from the current 2.7 times.
In other recent news, Patrick Industries has reported strong second quarter earnings and revenue results. The company reported a 10% increase in revenue to approximately $1.02 billion and a 13% improvement in net income to $48 million.
Earnings per diluted share reached $2.16. Following these results, Roth/MKM increased the price target for Patrick Industries shares to $134 from $126, while DA Davidson raised the price target to $114 from $108.
Both firms highlighted the company's resilience amidst market challenges, with Roth/MKM maintaining a Buy rating and DA Davidson keeping a neutral stance. Patrick Industries' growth was attributed to strategic diversification investments, a focus on innovation, and recent acquisitions.
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