Holley downgraded to Neutral from Overweight at JPMorgan

JPMorgan downgraded Holley to Neutral from Overweight with a price target of $5, down from $6.50. The firm is also placing the shares on “Negative Catalyst Watch” into the Q4 earnings on February 28. While CEO Matt Stevenson is making the right changes for the long term, Holley faces a tough setup into 2024 with the Street mis-modeling 2024 sales and assuming the company achieves its 40% gross margin / 20% EBITDA margin targets in 2024, the analyst tells investors in a research note. The firm expects numbers to reset lower with the downward revision a negative catalyst for the multiple.