Canaccord Genuity reiterates Buy rating on Hillman Solutions stock

Investing.com - Canaccord Genuity has reiterated its Buy rating and $13.00 price target on Hillman Solutions Corp. (NASDAQ:HLMN) ahead of the company’s second-quarter results. Currently trading at $7.77, the stock shows potential upside according to InvestingPro analysis, which indicates the company is slightly undervalued based on its Fair Value model.

The research firm surveyed 80 Hillman customer locations across the United States, including stores from Lowe’s (NYSE:LOW), Ace Hardware, Home Depot (NYSE:HD), Tractor Supply (NASDAQ:TSCO), and traditional hardware and lumber supply locations. This marks Canaccord’s eighth round of customer checks since it began covering the stock two years ago. The company has demonstrated stability with $1.48 billion in revenue over the last twelve months and maintains a healthy current ratio of 2.46, indicating strong liquidity management.

The survey found only modest price increases in fasteners, with consumers generally accepting or expecting price increases in other product categories. Consumer confidence has rebounded significantly after a temporary decline in April.

Despite improved consumer sentiment, the survey indicated that large project activity remains subdued, primarily due to higher interest rates and housing turnover at its lowest level in more than 30 years. Canaccord noted positive signs in the housing market, with inventory, price cuts, and days on market all rising simultaneously since May, potentially signaling a shift to a buyer’s market.

Based on these findings, Canaccord adjusted its Q2 estimates for Hillman Solutions, projecting modestly lower sales but improved margins, with estimates remaining above consensus. InvestingPro data reveals multiple positive indicators, including expected net income growth and profitability forecasts. Subscribers can access 8 additional ProTips and comprehensive financial analysis through the Pro Research Report, available exclusively on InvestingPro.

In other recent news, Hillman Solutions Corp reported its first-quarter earnings for 2025, meeting market expectations with an earnings per share (EPS) of $0.10 and revenue of $359.3 million, slightly above the forecasted $358.14 million. The company also saw a 2.6% year-over-year increase in net sales and a 4.2% rise in adjusted EBITDA. Stifel initiated coverage on Hillman Solutions with a Buy rating and a $9.50 price target, highlighting the company’s potential for mid-single-digit organic revenue growth and double-digit organic EBITDA growth. Stifel also noted Hillman’s strategic positioning for mergers and acquisitions. Despite challenges such as tariff impacts and a decline in the Canadian market, Hillman has shown resilience through supply chain diversification and product innovation. The company reiterated its full-year net sales guidance of $1.495 billion to $1.575 billion and anticipates an adjusted EBITDA of $255 million to $275 million. Hillman’s management expressed confidence in handling tariff challenges, with ongoing efforts to diversify suppliers and optimize pricing strategies.

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