FOXF Stock Forecast & Price Target

Fox Factory Holding Corp is projected to achieve high-single digit percentage sales growth over the next 3-5 years, with earnings per share potentially exceeding $6.50 in the long term. The company is starting to see stabilization in its Bike business, evidenced by a growing order book and improved visibility into future production, alongside cost measures that are expected to yield annualized savings of approximately $25 million. Additionally, a positive trend in SG&A expenses, which are 100 basis points better than expectations, suggests improving operational efficiency and further supports the optimistic outlook for the company.

Fox Factory Holding Corp has experienced a significant 22% year-over-year decline in revenue, marking a troubling trend as the company has revised its full-year guidance downward for the fifth time in six quarters. The disappointing financial performance is further emphasized by a projected EBITDA margin of only 12.7%, falling short of estimates and reflecting challenges such as adverse product mix and the impact of inventory management within the AAG segment, which detracted approximately 300 basis points from gross profit margins. The ongoing need to evaluate and potentially broaden its product offerings and customer base raises concerns regarding its ability to meet growth objectives and adapt effectively to market demands.