Holley Inc. HLLY is poised to benefit from the significant whitespace in the $35 billion performance automotive aftermarket, while there is also potential for acquisition-driven upside, according to Bank of America Securities.
The Holley Analyst: Alexander Perry initiated coverage of Holley with a Buy rating and a price target of $13.
The Holley Thesis: The Bowling Green, Kentucky-based company has a strong portfolio, with several brands that hold the leading position in various market categories, Perry said.
Holley currently has less than a 2% share in the large performance automotive aftermarket.
"Holley serves a younger and more affluent buying demographic,” he said. The brands Holley acquired in 2021 “are expected to have a $56mm contribution in 2022.”
The company also has “strong new product development with over 1,300 new SKUs introduced in 2021… and strong ability to take price (HLLY implemented two, 5% pricing increases in 2021),” he added.
HLLY Price Action: Shares of Holley had risen by 2.09% to $10.28 at the time of publication Wednesday.
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