Cavco Industries price target lowered to $380 from $390 at Wedbush

Wedbush lowered the firm’s price target on Cavco Industries to $380 from $390 and keeps an Outperform rating on the shares. Total demand appeared to stabilize in Q2 2024 as evidenced by nearly flat backlogs in Q2 2024 versus Q1 2024, the firm notes. Management did not quantify the change but indicated orders increased sequentially from Q1 2024 to Q2 2024 which was a backlog catalyst. When the manufactured home community operators return to normal ordering, that may have a noticeable impact for Cavco and the industry since Cavco estimates MHCs are approximately 1/3rd of annual industry demand, Wedbush adds. Cavco expects it may take until year-end 2023 to rectify the inventory issues in the MHC channel.