On Wednesday, Craig-Hallum maintained a Buy rating on Skyline Corporation (NYSE: SKY) shares, raising the price target to $99 from $92, following the company's strong quarterly performance. Skyline, formerly known as Skyline Champion (NYSE:SKY), showcased robust gross margins and effective overall execution in their recent financial results.
The company's order activity has experienced a slight decline, attributed to the aftermath of hurricane events, the current political climate surrounding the elections, and typical market seasonality. Despite these factors, the firm anticipates a significant backlog and growing demand in the market.
The analyst predicts that while the published estimates remain cautious, the potential for Federal Emergency Management Agency (FEMA) orders could lead to an increase in volumes for the calendar year 2025.
The analyst's statement highlighted the company's strong quarterly results and the expectation of building demand, despite a recent softening in order activity. The anticipation of FEMA-related orders and a significant demand pipeline supports the firm's outlook for future volume growth. The current Buy rating is upheld, and the price target has been adjusted upward to reflect these considerations.
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