Holley (HLLY) Stock Forecast & Price Target

Holley Inc. demonstrated a robust sales growth of approximately 12% among national retailer clients in 2024, aided by a cooperative approach that now encompasses around 80% of wholesale sales volume, despite facing broader market challenges. The company's operational efficiency initiatives yielded an improved adjusted EBITDA of $29.1 million, while significant cost reductions of $7.8 million were realized, positioning Holley for a rebound in sales and profit growth anticipated to commence in the second half of 2025. Furthermore, projections for 2025 indicate a total sales growth of 4.0%, with expectations of sequential improvement in topline trends, supported by innovation and category expansion strategies.

Holley Inc. experienced a significant decline in total sales, which decreased by 10.1% to $140.1 million, primarily due to weakness in the reseller channel and ongoing macroeconomic challenges such as high inflation and elevated interest rates impacting consumer demand. The misalignment between demand and supply is further exacerbated by increased inventory levels among distribution partners, hinting at a persistent inventory surplus that could pressure future sales. A downward revision in the 2025 sales projection, now anticipating a decline of 0.4% to $600 million, coupled with broader trends of declining consumer confidence, supports a cautious outlook for the company's financial performance.