Cavco Industries price target lowered to $290 from $335 at Craig-Hallum

Craig-Hallum analyst Greg Palm lowered the firm’s price target on Cavco Industries to $290 from $335 and keeps a Buy rating on the shares. The analyst notes Cavco reported solid Q2 results with both revenues and earnings nicely ahead of estimates. However, much of the focus is pointed towards the 35% sequential decline in backlog, a phenomenon seen across the industry, Palm adds. Commentary suggests this could take a couple of quarters to normalize before retail activity returns. While this creates some added near-term uncertainty and results in some downwards estimate adjustments, the analyst continues to believe that the overall fundamentals of Cavco and the MH industry remain strong and are poised to take share from site-built in the coming years.