As previously reported, DA Davidson analyst Michael Baker downgraded Holley to Neutral from Buy with a price target of $2, down from $4. The analyst contends that 2023 consensus estimates remain too high even after the company’s recent negative Q4 revenue pre-announcement and warns that the stock continues to trade at a "fairly healthy" multiple on both price-to-earnings and EBITDA basis, suggesting that there could still be some near term downside in the shares. The firm adds however that while Holley shares may see another leg down on guidance, it is positive on the company longer-term as it offers "strong customer affinity, a favorable target consumer demographic and strong profit margins".
Published first on TheFly
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Read More on HLLY:
- Holley downgraded to Neutral from Buy at DA Davidson
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