Holley (HLLY) PT Lowered to $4 at Benchmark, Buy Rating Maintained as 'Selloff Is Overdone'

Benchmark analyst Michael Albanese lowered the price target on Holley (NYSE: HLLY) to $4.00 (from $4.50) while maintaining a Buy rating.

The analyst commented, "Sales declined ~4%, driven by elevated distributor inventory and weather disruptions (~$3M headwind on top of seasonality). Despite the top-line pressure (which reduced GM% -65bps), AEBITDA was flat y/y with margins expanding +71 bps to 18.5% and FCF improved nearly $5M, highlighting cost controls and operational execution. Importantly, 3 of 4 segments grew across both DTC and B2B channels, with weakness isolated to American Performance given its heavier exposure to impacted distributors. Underlying demand appears resilient, w/out-the-door sales up ~4%. We believe the selloff is overdone and the thesis remains intact. We’re maintaining our Buy but are reducing our PT to $4.00 implying ~12.5x AEBITDA multiple."

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