Benchmark Upgrades Holley to Buy from Hold with $4 Price Target

Benchmark Upgrades Holley to Buy from Hold with $4 Price Target

In a significant move, Benchmark Research has upgraded Holley Inc. (NYSE: HLLY) from a "hold" rating to a "buy" rating, setting a new price target of $4.00 per share. This upgrade comes amidst a wave of positive analyst reports and a strong revenue performance in the second quarter of 2025.

Holley reported $166.7 million in revenue for Q2 2025, exceeding analyst expectations by $3.63 million. While the earnings per share (EPS) fell short at $0.09 compared to the expected $0.10, the company's stock price surged by 15.69% in pre-market trading. This indicates that investors are optimistic about the company's revenue growth and operational improvements, despite the EPS shortfall [2].

The upgrade by Benchmark follows a series of positive analyst reports. Raymond James Financial raised Holley's target price from $2.25 to $3.00, indicating a potential upside of 6.19% from the current stock price. Truist Financial also dropped their target price on Holley from $5.00 to $3.00 and set a "buy" rating on the stock. Other analysts, including Canaccord Genuity Group and Telsey Advisory Group, have also issued positive reports on the company [1].

Holley's stock performance has been strong, with a market cap of $339.51 million, a PE ratio of -13.45, and a beta of 1.35. The company has a debt-to-equity ratio of 1.28 and a current ratio of 2.86. Holley's stock has a 1-year low of $1.60 and a 1-year high of $3.46 [1].

Institutional investors have also shown confidence in Holley, with several large investors increasing their stakes in the company. Allspring Global Investments Holdings LLC, Bamco Inc. NY, Blue Owl Capital Holdings LP, Boston Partners, and Dimensional Fund Advisors LP have all increased their holdings in Holley during the past quarters [1].

Holley operates as a designer, manufacturer, and marketer of automotive aftermarket products for car and truck enthusiasts. The company's products span various automotive platforms and sell across multiple channels. Holley's performance automotive products include carburetors, fuel pumps, fuel injection systems, nitrous oxide injection systems, superchargers, exhaust headers, mufflers, distributors, ignition components, engine tuners, automotive performance plumbing products, and exhaust products, as well as shifters, converters, transmission kits, transmissions, tuners, and automotive software [1].

Holley's upgrade to a "buy" rating by Benchmark, along with the positive analyst reports and strong revenue performance, suggests that investors may find value in the company's stock. However, it is essential to consider the company's risks, such as economic uncertainties, regulatory transitions, supply chain efficiency, market saturation, and currency fluctuations [2].

References:

[1] https://www.marketbeat.com/instant-alerts/holley-nysehlly-price-target-raised-to-300-2025-08-07/
[2] https://za.investing.com/news/transcripts/earnings-call-transcript-holley-incs-q2-2025-revenue-beats-expectations-93CH-3823128