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Investing.com - Stifel has reiterated its Buy rating and $9.50 price target on Hillman Solutions Corp. (NASDAQ:HLMN), currently trading at $7.73, as the firm expresses confidence in the company’s ability to implement pricing strategies that will offset tariff inflation. According to InvestingPro analysis, HLMN appears undervalued relative to its Fair Value, with analysts setting targets ranging from $8 to $15.
The research firm noted that concerns about Hillman’s ability to achieve necessary pricing and potential disruption from tariff inflation, initially quantified at $250 million, have weighed on the company’s shares, leading to underperformance since Liberation Day with HLMN declining 14.0% while the S&P 500 gained 10.5%.
Stifel believes there is at least $65 million of favorability versus formal guidance, though this still requires significant pricing actions from the company to fully mitigate the impact of tariffs.
The firm’s confidence in Hillman’s pricing power is reinforced by several factors, including anecdotal evidence gathered during June store walks, recently released June CPI data, and analysis of uploaded receipt data across three categories at Hillman’s two largest customers, which suggests net pricing is accelerating.
Stifel emphasized the differentiated value that Hillman Solutions provides to its customers as another factor supporting its continued Buy rating on the stock.
In other recent news, Hillman Solutions Corp reported its first-quarter earnings for 2025, meeting market expectations with an earnings per share of $0.10 and revenue slightly exceeding forecasts at $359.3 million. The company has maintained its full-year net sales guidance of $1.495 billion to $1.575 billion, with an anticipated adjusted EBITDA of $255 million to $275 million, reflecting a 10% growth at the midpoint. Canaccord Genuity reiterated its Buy rating on Hillman Solutions with a $13.00 price target, projecting modestly lower sales but improved margins for the second quarter. Stifel initiated coverage on Hillman Solutions with a Buy rating and a $9.50 price target, noting the company’s potential for mid-single-digit organic revenue growth and double-digit organic EBITDA growth. The firm highlighted Hillman’s position to execute synergistic mergers and acquisitions, despite concerns about pricing strategies amid tariff inflation. Hillman Solutions continues to navigate economic uncertainties with strategic pricing adjustments and supply chain diversification, aiming to mitigate the impact of tariffs. These recent developments reflect Hillman’s resilience and strategic positioning in the home improvement sector.
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