Skyline Corp. (SKY) Stock Forecast & Price Target

Champion Homes Inc. demonstrates a strong financial outlook, highlighted by a year-over-year increase in average selling prices (ASP) for manufactured homes, which rose by 5% to reach $94.3, despite a slight quarterly decline. The company has benefited from positive inflections in shipment volumes, which have yielded operating leverage that enables margin expansion, even amidst inflationary pressures on input costs. Additionally, anticipated improvements in the lending environment are projected to further enhance financial estimates and potentially lead to multiple expansions for the company.

Champion Homes Inc. is facing a negative outlook primarily due to a notable decline in EBITDA margins, with the latest figures showing a drop to 10.5%, down 100 basis points year-over-year, reflecting a decrease in gross margins from 27.0% to 25.4%. Additionally, projected revenue growth for FY'26 stands at only 4% year-over-year, which is inadequate to offset the anticipated SG&A percentage deleverage stemming from weaker sales performance. The company's revised FY'26 EBITDA estimate has been reduced by 17% to $273 million, indicating significant concerns over continued margin pressures and a challenging demand environment.