Canaccord Genuity Maintains a Buy on Holley (HLLY), Keeps the PT

Holley Inc. (NYSE:HLLY) is one of the Best Rising Penny Stocks to Buy According to Hedge Funds. On August 12, Canaccord Genuity analyst Brian McNamara maintained a Buy rating on Holley Inc. (NYSE:HLLY) with a price target of $6.

The analyst noted that he sees strong growth potential and stability for the company, driven by a return to solid industry growth. He added that this growth is fueled by rising vehicle sales and a passionate customer base. Moreover, McNamara also likes the company’s smart mergers and acquisitions strategy, which he believes strengthens its market position.

Although the automotive aftermarket is fragmented, the strategic acquisitions of Holley Inc. (NYSE:HLLY) improve its foothold. The analyst noted that the company generates strong free cash flow, driven by its capital-light business model and attractive gross margins.

Holley Inc. (NYSE:HLLY) designs and manufactures high-performance automotive parts for vehicle enthusiasts. The company offers a wide range of products, including fuel systems, superchargers, exhausts, and engine tuners.

While we acknowledge the potential of HLLY as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.