Aftermarket Car Parts Maker Holley Surges on Wall Street Upgrades
Charles M. Hall
August 20, 2023
Shares Rise: Shares of aftermarket car parts maker Holley saw a significant increase of over 20% following upgrades from two Wall Street research houses.
Impressive Stock Growth: The stock has climbed nearly 21% to reach $5.32 per share. Year-to-date, Holley's stock has surged by more than 150% after experiencing a substantial decline of almost 84% in 2022.
Positive Ratings from Analysts: Today, Bank of America and JPMorgan analysts both upgraded Holley's stock, assigning bullish ratings. These upgrades come as the company named Matthew Stevenson as its CEO in May, a renowned turnaround specialist.
Improved Chip Securing Abilities: JPMorgan analysts, who recently had meetings with Holley's executives, noted that the company's ability to secure chips critical to its products has improved. Moreover, they believe that Holley's financial guidance for the remainder of the year might be conservative. Third-party data also suggests that the company is gaining market share from its competitors. As a result, JPMorgan upgraded their rating on the stock to "overweight" and set a price target of $7.
Cost Cutting Progress: Bank of America analysts highlighted Holley's progress in cost-cutting efforts and echoed JPMorgan's sentiment about the company's improved supply chain. Hence, they upgraded Holley's stock to "buy" and raised their price target to $6 per share.