HLLY - Driven Brands Holley and Spectrum Brands land buy ratings from Canaccord

2023-03-30 13:15:39 ET

Canaccord Genuity started off coverage on five different consumer product stocks on Thursday. Buy ratings were doled out on Driven Brands ( DRVN ), Holley ( HLLY ), Lifetime Brands ( LCUT ), and Spectrum Brands ( NYSE: SPB ) - while coverage on Reynolds Consumer Product ( REYN ) was initiated with a Hold rating.

Driven Brands ( DRVN ) was noted to be the largest auto services company in North America with a growing and highly franchised base of 4,805 locations.  The company is seen just scratching the surface of its growth potential.

Holley ( HLLY ) was called a leading manufacturer of automotive aftermarket products for car enthusiasts, including fuel-injection systems, carburetors, engine products and exhaust systems for high-performance cars. Canaccord thinks the company will continue to gain share both organically and via M&A. The stock is called attractive with investors' expectations low.

Lifetime Brands ( LCUT ) was noted to be the #1 player in North American non-electric housewares, a significantly fragmented market with >2K competitors in the U.S. Growth is expected to resume for LCUT and the company is seen gaining share both organically and inorganically

Spectrum Brands ( SPB ) was viewed positively with the company anticipated to pay down debt and turn to more tuck-in type deals across GPC and H&G. Canaccord thinks a leaner, more focused, and higher margin/growth company should produce more predictable results and lead to a higher trading multiple.

Meanwhile, the Canaccord view on Reynolds Consumer Products ( REYN ) was more cautious with a Hold rating pushed out. The firm's  enthusiasm for the REYN brand portfolio is offset by a volatile earnings profile that is often dependent on commodity prices.

Compare growth, profitability, and valuations metrics on DRIV, SPB, HLLY, LCUT, and REYN.

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