HLLY - Holley soars after BofA JPMorgan boost ratings
2023-07-12 09:38:40 ET
Holley ( NYSE: HLLY ) rose 25% as BofA Global Research and JPMorgan upgraded shares expecting better margins ahead.
BofA bumped shares to Buy from Neutral and increased its price objective to $6 from $3.25 on HLLY. JP Morgan lifted its rating to Overweight from Neutral and established a $7 price target.
BofA cited web traffic data for Holley.com and resellers implying Q2 revenue upside; cost cuts that should drive stronger operating leverage vs. expectations; and better sourcing for its popular fuel injection products, which represent about 15% of sales.
JPMorgan said it sees topline upside in 2023 and 2024 given conservative guidance, as well as the upcoming launch of Sniper 2.0, which “should drive a multi-year lift to organic growth and gross margins with green shoots appearing in 2H23.” The firm also noted that margin upside is likely on cost savings.
Shares of HLLY are down 60% over the past 12 months, dropping last July after Holley ( HLLY ) reported second-quarter preliminary results that disappointed the market. The company also reported a sharp cut in its full-year guidance. Shares recovered year-to-date to double.
More on Holley:
- Holley: Decent Q1 2023 Results But Underwhelming Outlook (Rating Upgrade)
- Holley appoints president and CEO
- Holley Inc. ( HLLY ) Q1 2023 Earnings Call Transcript
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Holley soars after BofA, JPMorgan boost ratings