Fox Factory Holding Corp. ( NASDAQ: FOXF ) is offering an attractive entry point after earnings, according to Stifel.
The firm’s analysts upgraded shares of the Georgia-based manufacturer after the company posted a beat on earnings estimates and guided conservatively into the coming quarters. That conservative outlook , in fact, is key to setting up “beat and raise opportunity into 2023”, according to the analysis.
“Led by both Up-fitting and Auto OEM backlog, visibility is strong into 1H23 and commentary suggests the bike business outlook is better than feared,” the note explained. “Margin progress from the Georgia manufacturing facility in combination with moderating commodity costs sets the stage for margins to build across 2023.”
As such, Stifel hiked its price target on shares to $115 and upgraded shares from Hold to Buy.
“We are raising estimates but will maintain a conservative approach to projections for FY23,” the research concluded. “At 12.5X the revised FY23 EBITDA estimates, we see this an attractive entry point for a business with strong visibility and secular growth potential.”
Read more on the earnings results .
For further details see:
Fox Factory upgraded to ‘Buy’ at Stifel after earnings beat