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On Monday, Stifel analysts maintained their Buy rating and $40.00 price target for Fox Factory Holding (NASDAQ:FOXF), representing a significant upside from the current price of $26.16. The stock is trading near its 52-week low of $25.17, having declined 27% over the past six months. Following meetings with Dennis Schemm, Fox Factory’s Chief Financial Officer, the firm provided insights into the company’s business segments and their status post-COVID disruption. The discussions also touched on the outlook presented during the February 27 earnings call.
The analysts at Stifel highlighted the company’s progress towards a full recovery from the cyclical downturn caused by the pandemic. They noted that the collection of businesses within Fox Factory is at various stages of rebounding. With annual revenue of $1.39 billion and a strong current ratio of 2.8, the company maintains solid financial footing. Despite challenges posed by tariffs, Stifel recommends investing in Fox Factory shares in anticipation of a return to normal operations and the associated benefits. InvestingPro analysis reveals additional insights about the company’s financial health and growth potential.
Stifel’s outlook for Fox Factory is positive, with expectations of a potential recovery in key end-markets. This recovery is anticipated to accelerate the company’s fundamental performance as 2025 unfolds. Improved visibility into forward demand is also expected to bolster the company’s prospects.
The valuation of Fox Factory is seen as attractive by Stifel, with the shares trading at less than 10 times the price-to-earnings (P/E) ratio based on their fiscal year 2026 earnings per share (EPS) estimate of $2.89. According to InvestingPro’s Fair Value analysis, the stock appears undervalued at current levels, with analyst targets ranging from $30 to $40. The analysts believe that this valuation leaves room for significant outperformance against a backdrop of stable consumer conditions. Discover more detailed valuation metrics and 8 additional ProTips with an InvestingPro subscription, including access to comprehensive Pro Research Reports covering 1,400+ top stocks.
In other recent news, Fox Factory Holding Corp reported its financial results for the fourth quarter of 2024, revealing an earnings per share (EPS) of $0.31, which fell short of the analyst forecast of $0.46. The company’s revenue also came in below expectations at $352.8 million, compared to a forecast of $385.63 million. Despite these misses, Fox Factory’s total consolidated net sales increased by 6.1% year-over-year, reaching $352.8 million. The company announced a $25 million cost reduction initiative, aiming to improve margins and operational efficiency. Looking forward, Fox Factory has set its 2025 net sales guidance between $1.385 billion and $1.485 billion, with adjusted EPS expected to range from $1.60 to $2.60. In analyst actions, Jefferies revised Fox Factory’s price target to $38.00 from $45.00, while maintaining a Buy rating on the stock. The adjustment follows Fox Factory’s fourth-quarter adjusted EPS report, which surpassed the estimated $0.30 and consensus $0.29.
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