Roth Capital Reduces Target Price on Dorman Products (DORM) to $162

Dorman Products Inc. (NASDAQ:DORM) is one of the 15 Most Undervalued NASDAQ Stocks to Buy According to Wall Street Analyst.

Roth Capital, on March 2, reduced its target price on Dorman Products by 11.0% to $162 (from $182), while retaining the firm’s Buy recommendation on the stock.

This update comes a couple of days after Dorman Products released its Q4 earnings report on February 26, showing DORM posting $2.17 in diluted adjusted earnings per share. This print, while 1.4% lower vs. Q4 2024, was better than expected, with the street consensus only at $2.12.

The turnaround of the “Heavy Duty” segment led the way for this earnings beat, as volumes grew (driven by new business wins) in the mid-single-digits and operating profit margins expanded. The “Light Duty” segment, meanwhile, was steady, with revenue flat YoY despite the exceptionally high base set in Q4 2024. The “Specialty Vehicle” segment, meanwhile, dragged as tepid consumer spending persisted through the quarter, and higher wage and benefit costs led to margin contraction.

Despite the beat, management’s FY 2026 guidance did not meet expectations. Management projected revenue to grow 7% to 9%. Despite the projected revenue growth, management forecasts diluted adjusted earnings per share to decline 4% to 9%, which would mean margins would continue to be under pressure in 2026. This earnings guidance would imply a diluted EPS range of $8.10 to $8.50, which is significantly below the consensus estimate of $9.44.

Dorman Products Inc. (NASDAQ:DORM) supplies automotive replacement and upgrade parts for the motor vehicle aftermarket industry. The company is based in Colmar, PA, and was founded in October 1978 by Steven L. Berman and Richard N. Berman.

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