Cavco Industries (CVCO) PT Raised to $257 at Craig-Hallum on Best Demand Environment In Years

February 1, 2021 9:21 AM EST
Get Alerts CVCO Hot Sheet
Price: $224.62 -0.8%

Rating Summary:
    3 Buy, 1 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 17 | Down: 14 | New: 42
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Craig-Hallum analyst Greg Palm raised the price target on Cavco Industries (NASDAQ: CVCO) to $257.00 (from $234.00) after the company reported solid results and strong demand commentary that implies pricing flexibility even when commodity costs normalize.

The analyst reiterated the Buy rating, stating "With orders up 65% and backlog 310% y/y, revenue acceleration coupled with meaningfully higher bottom-line growth will be the key story in CY21. Notably, ASPs were up 13% y/y in the quarter, mostly from recent price increases to offset higher input costs. Importantly, we believe current pricing can be sustained even if/when commodity costs normalize, which should result in meaningfully better quarters ahead. At that point, we expect a much bigger move in the stock and encourage investors to accumulate shares before this happens."

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