Holley (HLLY) Stock Forecast & Price Target

Holley Inc. recorded a sales increase of 3.2% to $138.4 million in the third quarter of 2025, surpassing initial forecasts and reflecting robust demand driven by both volume and pricing enhancements. The company's adjusted EBITDA reached $27.2 million, exceeding estimates and indicating effective cost management alongside revenue growth. Looking ahead, Holley is anticipated to achieve a sales growth of 5.0% in 2026, with expectations of continued market share gains and solid performance across its B2B and online channels.

Holley Inc. has demonstrated a slight improvement in its financial position with a reduction in the net debt to adjusted EBITDA ratio from 4.22x to 3.9x, but the company's overall outlook remains negative due to forecasted total sales declining by 1.2% to $595.2 million and an adjusted EBITDA margin contraction to 20.4%. The anticipated core growth slowdown of 4.4% year-to-date raises concerns over the company's ability to maintain momentum, particularly as it did not replicate a successful marketing event from the previous year. Additionally, Holley faces significant risks from rising commodity and material costs, channel conflict due to increasing direct-to-consumer sales, and potential issues in integrating acquisitions, which could further pressure margins and operational efficiency.