Canaccord Genuity has sustained its optimistic stance on Holley (NYSE: HLLY) shares, maintaining a Buy rating and a $7.00 price target.
The endorsement follows the firm's attendance at the Holley LS Fest East, an event celebrating vehicles powered by GM's LS engine, which took place at Beach Bend Raceway Park in Bowling Green, KY.
The event is part of Holley's strategy to engage with consumers directly, providing a platform for the company to connect with its target market, understand their product preferences, and monitor automotive trends.
The analyst highlighted the importance of such events in reinforcing Holley's relationship with its consumer base. These gatherings are seen as opportunities for the company to hear firsthand what customers are looking for in products and to stay informed about the industry's evolving trends. This direct engagement is considered a testament to the commitment and durability of Holley's market.
Additionally, the event offered investors a chance to interact with Holley's broader management team, which has seen enhancements since the arrival of CEO Mr. Matt Stevenson 15 months ago.
The analyst expressed increased confidence in the leadership's ability to pivot the company towards sustained growth, suggesting that a positive shift in Holley's revenue is a matter of "when," not "if."
In other recent news, Holley's Q2 2024 earnings report showed a 3.3% decrease in net sales, despite an increase in adjusted gross margins and EBITDA margins. Its full-year guidance has been revised due to an uncertain consumer outlook, with net sales expected to range between $605 million and $645 million.
Benchmark has maintained its Buy rating on Holley, praising the strong management team that CEO Matt Stevenson has assembled. Despite the current macroeconomic climate, the team is reportedly focused on refining operating strategies and enhancing Holley’s competitive edge in the market.
Meanwhile, Truist Securities revised its financial outlook for Holley, reducing its stock price target to $7.00 from the previous $8.00, while maintaining its Buy rating. The firm believes that Holley's operational strategies have established a new baseline for margin and cash generation, which supports long-term earnings potential.
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