- Wedbush analyst Jay McCanless raised the price target on Cavco Industries Inc (NASDAQ:CVCO) to $315 from $255 and kept a Neutral rating on the shares, implying an 8% upside.
- The analyst believes demand trends for Cavco continue to be robust, with a stable backlog and pricing power across Cavco's revenue channels.
- McCanless noted supply chain issues, including domestic trucking, are still a drag on production, but Cavco managed to grow the capacity utilization by 5% sequentially despite those headwinds.
- At current levels, the analyst views Cavco as fairly valued.
- Recently, Cavco Industries reported 49.5% Y/Y growth in Q3 FY22 revenue to $431.71 million, above the consensus of $408.42 million.
- The company's total average plant capacity utilization rate was 80% during Q3, back to pre-pandemic levels, and improved from approximately 75% during Q2.
- Price Action: CVCO shares are trading higher by 0.36% at $291.77 on the last check Monday.
