Canaccord Genuity raises Holley stock price target to $6 on strong Q2 results

Published 07/08/2025, 12:42
Canaccord Genuity raises Holley stock price target to $6 on strong Q2 results

Investing.com - Canaccord Genuity raised its price target on Holley (NYSE:HLLY) to $6.00 from $5.00 on Thursday, while maintaining a Buy rating following the company’s second-quarter results that exceeded expectations. According to InvestingPro data, analysts’ targets for Holley range from $3.00 to $6.00, with two analysts recently revising their earnings expectations upward.

Holley reported better-than-anticipated Q2 performance, with sales and adjusted EBITDA coming in approximately 3% and 5% above consensus estimates, respectively. The automotive aftermarket company achieved organic sales growth of 3.9% in the quarter, marking its second consecutive quarter of organic growth. InvestingPro analysis shows the company maintains a healthy gross profit margin of 43.5% and a strong current ratio of 2.93, indicating solid operational efficiency.

The performance represents an improvement from the 3.3% organic growth recorded in Q1 and exceeded Canaccord’s projection of 2.3% growth. Despite flat sales in July during a seasonally slow period, Canaccord views Holley’s updated and narrowed sales guidance as conservative.

Holley’s revised guidance implies 0.3% organic growth in the second half of the year. The company also increased its profitability guidance, which now accounts for tariffs, removing some uncertainty for investors.

Canaccord maintained its view that Holley stock has the potential for the highest upside in its coverage universe throughout 2025, noting the stock’s 31% gain on Thursday compared to the Russell 2000’s 0.2% decline. The stock’s recent momentum is reflected in its impressive one-week return of 28.9%, though it remains trading close to its InvestingPro Fair Value. Investors seeking deeper insights can access comprehensive analysis and additional ProTips through the Pro Research Report, available exclusively to subscribers.

In other recent news, Holley Inc reported its second-quarter 2025 financial results, revealing mixed outcomes. The company exceeded revenue expectations, posting $166.7 million compared to the forecasted $163.05 million. However, Holley’s earnings per share (EPS) fell short at $0.09, missing the anticipated $0.10. Additionally, Holley achieved an adjusted EBITDA of $36.4 million, surpassing both Telsey Advisory Group’s forecast of $34.0 million and the FactSet consensus of $34.8 million. Following these results, Telsey Advisory Group raised its price target for Holley from $2.75 to $3.50, maintaining an Outperform rating. These developments indicate a positive outlook from analysts despite the mixed earnings performance. Investors are closely watching these updates for further insights.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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