Skyline Corp. (SKY) Stock Forecast & Price Target

Champion Homes Inc. demonstrates a solid financial outlook due to a year-over-year increase in average selling price (ASP), which rose by 5% to $94.3, indicating strong demand for its products. The company has experienced positive inflection in shipment volumes, contributing to enhanced operating leverage and margin expansion despite ongoing input cost inflation. Additionally, an anticipated improvement in the lending environment is likely to further benefit financial estimates, suggesting potential for multiple expansion moving forward.

Champion Homes is facing declining profitability, with its EBITDA margin decreasing to 10.5%, reflecting a year-over-year drop of 100 basis points due to lower gross margins and rising SG&A expenses amidst weaker sales. The company's fiscal year 2026 estimated EBITDA has been reduced by 17% to $273 million, indicating heightened concerns over continued margin pressure and an unfavorable demand environment. Additionally, while revenues are projected to grow by 4% year-over-year, this growth is overshadowed by deteriorating margins and financial performance metrics.