Barclays Cuts Champion Homes (SKY) PT to $72, Maintains Equal Weight Rating

On Wednesday, Barclays analyst Matthew Bouley reduced the price target on Champion Homes Inc. (NYSE:SKY) to $72 from $97, while maintaining an Equal Weight rating on the shares.

This adjustment comes amidst an incrementally challenged demand backdrop, which suggests lower margins for Champion Homes in the near term.

Bouley noted limited visibility on the company's return to its long-term gross margin framework of 26% to 27%, as utilization softens, consumers shift towards smaller homes, and input costs increase. In FY2025, Champion Homes had sales of $2.5 billion, which was a 23% increase year-over-year. FQ4 2025 revenue specifically was $594 million, which was up 11%. The company sold 26,000 homes in FY2025, which grew by 19%.

Champion Homes is expanding its retail capabilities, which is evidenced by the announced acquisition of Iseman Homes, which includes 10 retail sales centers. This move is expected to enhance growth in the plains region of the US. The company also experienced a positive reception for its new, affordable turnkey homes at the International Builders' Show. However, challenges persist, including tariffs and inflation impacting consumer sentiment, and an unpredictable market environment.

Champion Homes Inc. (NYSE:SKY) engages in the production and sale of factory-built housing in North America.

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