Bank of America Securities analyst Alexander Perry has reiterated their neutral stance on FOXF stock, giving a Hold rating on May 3.
Alexander Perry has given his Hold rating due to a combination of factors affecting Fox Factory Holding. While the company’s first-quarter earnings per share outperformed expectations primarily due to Marucci Sports’ significant contribution, there are concerns surrounding Fox Factory’s Powered Vehicle Group (PVG) and Aftermarket Applications Group (AAG). The PVG saw a 17% sales decline due to weak powersports demand and elevated dealer inventory levels. Similarly, the AAG faced a 27% drop in sales as increasing interest rates hampered purchases of lower-priced truck upfits, and OEM model year changes introduced further challenges.
Looking ahead, the Specialty Sports Group (SSG) is experiencing a downturn in legacy bike component sales, although there are signs of recovery with better visibility and improved bookings for the second quarter. However, there is an anticipated slight decline in PVG sales for the full year, as new product introductions are likely to be overshadowed by the ongoing destocking in powered sports and snowmobile volume pressures. Perry’s Hold rating reflects his view that while the stock’s current valuation is attractive, near-term market headwinds, particularly the impact of prolonged high interest rates on consumer spending, justify a cautious stance at this time.
In another report released on May 3, B.Riley Financial also maintained a Hold rating on the stock with a $45.00 price target.
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
Fox Factory Holding (FOXF) Company Description:
Fox Factory Holding Corp. engages in designing, engineering, manufacturing, and marketing performance ride dynamics products. Its product categories include bicycles; side-by-sides; on-road vehicles with off-road capabilities; off-road vehicles and trucks; all-terrain vehicles; snowmobiles; specialty vehicles and applications; and motorcycles. It operates through the following geographic segments: North America, Asia, Europe, and Rest of the World. The company was founded on December 28, 2007 and is headquartered in Braselton, GA.
