KeyBanc reiterates Patrick Industries stock rating on diversification

Published 11/06/2025, 14:52
KeyBanc reiterates Patrick Industries stock rating on diversification

KeyBanc Capital Markets reiterated its Overweight rating and $100.00 price target on Patrick Industries (NASDAQ:PATK) Wednesday following meetings with the company’s management team. The price target represents approximately 18.9 times KeyBanc’s fiscal year 2026 earnings per share estimate. According to InvestingPro data, analysts’ targets currently range from $80 to $110, with the stock trading at $91.02 and a P/E ratio of 20.9x.

The research firm noted it remains positive on Patrick Industries’ long-term opportunity through both organic growth and acquisitions. KeyBanc highlighted the company’s ability to increase production and leverage expenses once end-market conditions improve. InvestingPro analysis shows the company has maintained strong financial health with revenue growth of 8.12% over the last twelve months and a healthy current ratio of 2.41, indicating solid operational efficiency.

While KeyBanc acknowledged that the leisure vehicle market continues to face challenges, the firm favors Patrick Industries due to its diversified exposure across multiple segments. The company’s consistent track record of growth and margin performance through both organic initiatives and acquisitions was cited as a key strength. InvestingPro data reveals the company has raised its dividend for 6 consecutive years, with a current yield of 1.76%, demonstrating consistent shareholder returns despite market volatility.

The $100 price target falls within Patrick Industries’ historical price-to-earnings trading range of 7 to 23 times earnings. KeyBanc’s target specifically reflects approximately 18.9 times its fiscal year 2026 earnings per share estimate for the company.

Patrick Industries manufactures and distributes components for the recreational vehicle, marine, manufactured housing, and industrial markets. The company has expanded its product portfolio through numerous acquisitions in recent years to diversify its revenue streams.

In other recent news, Patrick Industries Inc. reported a strong performance for the first quarter of 2025, surpassing analysts’ expectations. The company announced earnings per share (EPS) of $1.11, exceeding the forecasted $0.97. Revenue also outperformed predictions, reaching $1 billion compared to the anticipated $960.2 million. Patrick Industries completed two acquisitions and repurchased $8.5 million of stock, emphasizing its strategic growth initiatives. The company reported a 7% year-over-year increase in net sales, with a net income rise of 9% to $38 million. Analysts from firms such as Truist Securities and Raymond (NSE:RYMD) James noted the company’s proactive approach to market dynamics, including strategies for tariff mitigation. Patrick Industries provided optimistic guidance for the remainder of the year, projecting full-year adjusted operating margins between 7% and 7.3%. The company continues to focus on maintaining a strong balance sheet and liquidity, positioning itself for future growth opportunities.

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