SKY - Skyline Champion stock gains after Wedbush upgraded to Outperform
- Skyline Champion ( NYSE: SKY ) shares are climbing 2.2% in Thursday premarket trading after Wedbush analyst Jay McCanless upgraded the factory-built housing maker on the basis of rising shipments and declining lumber prices.
- "In addition to our belief that SKY's F1Q23 shipments exceeded our prior estimate, we believe steep declines in lumber prices may be an EPS tailwind for at least F1Q23 and potentially longer," the analyst wrote in a note to clients.
- The potential for better-than-expected demand and lower lumber prices may partly offset investor concerns that Skyline Champion's ( SKY ) backlog had peaked in Q4 FY2022, McCanless wrote.
- The analyst increased his FY23 EPS estimate to $4.67 from $4.55 and boosted his Q1 FY23 shipment growth estimate to 12% from prior forecast of 4%.
- The Outperform rating lines up with the Quant rating of Buy and the average Wall Street rating .
- See SKY management's discussion of backlog in the Q4 FY2022 earning call.
- SA contributor Valkyrie Trading Society takes a look at Skyline's ( SKY ) exposure to building cycle shortages
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Skyline Champion stock gains after Wedbush upgraded to Outperform