On Wednesday, Roth/MKM expressed a positive stance on Dorman Products (NASDAQ: NASDAQ:DORM), increasing the stock's price target from $94.00 to $116.00 while maintaining a Buy rating.
The firm's analyst highlighted Dorman Products' promising financial performance, including significant fourth-quarter earnings per share and the company's fiscal year 2024 EPS guidance, which surpassed market expectations.
The company's management anticipates adjusted EPS for FY24 to be in the range of $5.40-$5.70, which indicates a 22% growth at the midpoint. This outlook is notably higher than the analyst and consensus estimates, which were around $5.20 before the earnings release.
The company's positive trajectory is attributed to the resolution of transitory inflationary pressures and sustained core demand. These factors are expected to contribute to a re-acceleration of earnings growth in FY24 and FY25. Additionally, Dorman Products is set to enhance its investor relations efforts to better communicate its growth strategies and potentially improve its market valuation.
The analyst from Roth/MKM remains optimistic about the company's future, stating that Dorman Products is poised to "capture lightning in a bottle" due to its strong financial guidance and the subsiding of inflationary challenges that previously affected the company.
Dorman Products, with its updated sales forecast, anticipates a 3%-5% increase in sales for the upcoming fiscal year. This growth projection, coupled with the robust earnings guidance, underlines the company's potential for continued financial success and justifies the raised price target and sustained Buy rating.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.