Fox Factory 2023 outlook at risk from UAW strike, says B. Riley

B. Riley says the United Auto Worker strike “hits at the heart” of Fox Factory’s auto exposure – high-profit trucks. With recent UAW commentary suggesting the intention for months-long disruption, Fox’s existing 2023 outlook is likely at risk, barring a swift signing of a new UAW labor agreement, the analyst tells investors in a research note. The firm sees near-term pressure to the model but says the overall impact should be more of a shift-out rather than a total loss of associated revenue. It expects the shares to be range-bound as the market digests strike updates, though its long-term thesis as effectively unchanged. B. Riley keeps a Buy rating on Fox Factory with a $125 price target.