Cavco Industries price target raised to $382 from $313 at Craig-Hallum

Craig-Hallum analyst Greg Palm raised the firm’s price target on Cavco Industries to $382 from $313 and keeps a Buy rating on the shares. The firm notes Cavco reported mostly in-line results, with revenues ahead on higher ASPs and profitability slightly missing expectations when excluding benefits from tax rate and share buybacks. Craig-Hallum is “encouraged” that order rates have continued to improve from lows and activity at the retail channel has returned with the end of destocking, which should lead to unit growth in 2024. Importantly, the return of community channel orders could add an incremental boost, although the firm is only assuming modest activity in the near-term out of conservatism.