Skyline Champion price target lowered to $75 from $81 at Craig-Hallum

Craig-Hallum analyst Greg Palm lowered the firm’s price target on Skyline Champion to $75 from $81 and keeps a Buy rating on the shares. While quarterly results were generally in-line with expectations, several items surprised the firm that have led to more tempered expectations going forward. Topping the list is the expectation of lower gross margin in the near-term, a result of lower capacity utilization, unfavorable mix and the impact of purchase accounting from recently acquired Regional, Craig-Hallum says. While the firm expects each of these will prove temporary in nature, they will act as a significant drag for near-term earnings.