Skyline Corp. (SKY) Stock Forecast & Price Target

Champion Homes Inc. demonstrates a robust positive outlook, reflected in its stronger average selling price (ASP) of $94.3, which represents a 5% year-over-year increase despite a slight decline quarter-over-quarter. The company stands to benefit from an improved lending environment, which is anticipated to enhance financial estimates and promote multiple expansion. Furthermore, the positive inflection in shipment volumes is contributing to increased operating leverage, enabling margin expansion even amid the challenges posed by rising input cost inflation.

Champion Homes Inc. is facing a concerning decline in its financial metrics, with EBITDA margins falling to 10.5%, a decrease of 100 basis points year-over-year, attributable to a drop in gross margins from 27.0% to 25.4%. The company's projected FY'26 revenues are expected to grow modestly by 4% year-over-year; however, this is overshadowed by a significant 17% reduction in the FY'26 EBITDA estimate to $273 million, highlighting ongoing margin pressures and a backdrop of weakened demand. Additionally, the anticipated deleveraging of SG&A expenses in response to lower sales further exacerbates the negative outlook for the company.