Cavco Industries To See Stabilizing Backlog And Consistent Retail Demand, Says Analyst
Portfolio Pulse from Shivani Kumaresan
Wedbush analyst Jay McCanless has reiterated an Outperform rating on Cavco Industries, Inc. (NASDAQ:CVCO) but lowered the price target from $390 to $380. This follows a 21.7% decline in Cavco's Q2 FY24 revenue to $452 million and a 17% y/y decline in Q2 shipments. The analyst has also lowered FY24E/FY25E EPS and revenue estimates. However, the analyst raised the average price from $99,000 to $102,000, assuming no widespread pricing pressure from Cavco's competitors.
November 07, 2023 | 6:37 pm
News sentiment analysis
Sort by:
Descending
NEUTRAL IMPACT
Cavco Industries has seen a decline in Q2 FY24 revenue and shipments, leading to a lowered price target from $390 to $380 by Wedbush analyst. However, the analyst has raised the average price from $99,000 to $102,000, assuming no widespread pricing pressure from Cavco's competitors.
The news of a decline in Cavco's Q2 FY24 revenue and shipments, as well as a lowered price target, could potentially have a negative impact on the company's stock price. However, the analyst's reiteration of an Outperform rating and the raised average price assuming no widespread pricing pressure from Cavco's competitors could balance out the negative impact, leading to a neutral short-term price direction.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100