Roth MKM Analyst Increases Price Target on Patrick Industries (PATK) by 18.8%

By Don Francis, Editor
February 10, 2024 9:41 AM UTC
Roth MKM Analyst Increases Price Target on Patrick Industries (PATK) by 18.8%

Roth MKM's Scott Stember raised their price target on Patrick Industries (NASDAQ: PATK) by 18.8% from $101 to $120 on February 9, 2024. The analyst maintained their Strong Buy rating on the stock.

Stember's positive outlook on Patrick Industries comes after the company reported "outsized" quarterly earnings for the fourth quarter of 2023 and full-year 2023. Despite the impact of a "rough" recreation/leisure marketplace, Stember remains constructive on the stock.

In the fourth quarter of 2023, Patrick Industries reported earnings per share (EPS) of $1.41, missing the previous year's EPS of $1.68 by 16%. Revenue for the quarter was $781.19 million, falling short of both the Zacks Consensus Estimate of $796.08 million and the previous year's revenue of $951.92 million by 18%. The operating margin stood at 7.3%.

For the full year of 2023, Patrick Industries reported EPS of $6.50, a 52% decrease from the previous year's EPS of $13.49. Revenue for the year was $3.47 billion, missing the previous year's revenue of $4.88 billion by 29%. The operating margin for the year was 7.5%. However, the company reported free cash flow of $350 million.

Looking ahead to fiscal year 2024, Patrick Industries's management has guided for an operating margin of 7.8% to 8% and free cash flow of at least $310 million. Despite challenges in the recreational vehicle (RV) and marine industries, CEO Andy Nemeth expressed confidence in the company's performance, highlighting their ability to deliver strong free cash flows through disciplined cost control and prudent working capital management.

Nemeth also emphasized the company's strategic initiatives to diversify its business and enhance profitability. These initiatives include investments like the recent acquisition of Sportech in January 2024. Nemeth expects improved performance when demand in their markets recovers.

Brett Andress, an analyst from KeyBanc, also issued an update on Patrick Industries on February 9, 2024. Andress raised their price target on the stock by 4.5%, from $110 to $115, while maintaining a Strong Buy rating.

The positive sentiment from Stember and Andress aligns with the consensus among analysts. Currently, 100% of top-rated analysts rate Patrick Industries as a Strong Buy or Buy, with no analysts recommending a Hold or a Sell.

Since the release of Patrick Industries' latest quarterly report on February 8, 2024, the stock price has increased by 4.5%. Year-over-year, the stock has seen an impressive gain of 49.6%. During this period, Patrick Industries has outpaced the S&P 500, which has gained 23.2%.

Scott Stember, the analyst who raised the price target on Patrick Industries, is ranked in the top 21% of Wall Street analysts by WallStreetZen. With an average return of 6.6% and a win rate of 53.6%, Stember specializes in the Consumer Cyclical and Industrials sectors.

Patrick Industries, Inc. is a manufacturer and distributor of components, building products, and materials for various markets, including the recreational vehicle (RV), marine, manufactured housing, and industrial sectors. Headquartered in Elkhart, Indiana, the company operates in the United States, China, and Canada.

The Manufacturing segment of Patrick Industries manufactures and sells a wide range of products, including furniture, shelving, cabinets, fiberglass bath fixtures, hardwood furniture, vinyl printing, amplifiers, speakers, soundbars, countertops, aluminum products, and more. The Distribution segment distributes a variety of products, such as wall and ceiling panels, electronic components, marine accessories, roofing materials, interior and exterior lighting products, and more.

Is Patrick Industries a Buy, Hold or Sell?

WallStreetZen tracks the performance of nearly 4,000 Wall Street analysts, whom we rank by average returns, frequency, and win-rate (backtested over multiple years).

Create a free watchlist and be the first to know when top-rated Wall Street analysts revise their Patrick Industries stock price forecast.

Want to get in touch? Email us at news@wallstreetzen.com.

WallStreetZen and Don Francis do not hold any positions in the companies mentioned in this article. The information and statistics provided herein are presented for general informational purposes only and may not be accurate, complete, or up-to-date. It should not be interpreted as a recommendation to buy or sell any stocks and should not be solely relied upon for making investment decisions. It does not take into account your financial situation or risk profile. All investors should conduct their own investment due diligence before buying a stock. WallStreetZen expressly disclaims any liability for the accuracy, reliability, or completeness of the analysts' information, price targets, ratings, or opinions.

WallStreetZen does not provide financial advice and does not issue recommendations or offers to buy stock or sell any security.

Information is provided 'as-is' and solely for informational purposes and is not advice. WallStreetZen does not bear any responsibility for any losses or damage that may occur as a result of reliance on this data.