Dorman Products (DORM) has received a new Buy rating, initiated by BMO Capital analyst, Tristan M. Thomas-Martin.
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Tristan M. Thomas-Martin has given his Buy rating due to a combination of factors that highlight Dorman Products’ strong market position and growth potential. The company’s core business in light-vehicle replacement parts is considered resilient, especially during economic downturns, due to the non-discretionary nature of its products. This defensive business profile is further bolstered by Dorman’s recent expansion into the heavy-duty and specialty vehicle markets, which are showing signs of improvement and offer additional growth opportunities.
Moreover, Dorman’s strategic acquisitions, such as Dayton Parts and SuperATV, have significantly contributed to its growth and market expansion. While large-scale mergers and acquisitions have paused, future deals could provide further upside. Additionally, despite potential tariff impacts, Dorman’s ability to manage pricing effectively due to the essential nature of its products positions it well to handle such challenges. Overall, even with its current valuation, there is potential for further gains through market share growth and strategic initiatives.
In another report released on September 15, Barrington also maintained a Buy rating on the stock with a $185.00 price target.
Based on the recent corporate insider activity of 104 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of DORM in relation to earlier this year.