Canaccord cuts Hillman Solutions stock price target on housing headwinds

Canaccord lowered its price target for Hillman Solutions Corp. (HLMN) shares to $13 from $14, keeping the stock on a Buy rating. The company's stock is currently trading at $6.99, close to its 52-week low of $6.84. An analyst survey was conducted on 52 of Hillman's customer locations, encompassing 10 Ace Hardware, 10 Home Depot, 14 Tractor Supply, and 18 traditional hardware stores.

This survey revealed that a majority of associates attribute the business decline to higher mortgage rates and interest rates. The stock has decreased by 19% year-to-date due to these challenges. Notably, Hillman recently completed its Kanebridge acquisition, which expands its addressable market in the Industrial segment by $1 billion, bringing the company's total addressable market to $3 billion.

Hillman currently serves just 3% of this market. Despite the near-term hurdles, an InvestingPro analysis suggests that the stock is undervalued at present, trading at a low P/E ratio relative to its expected earnings growth. For those seeking more detailed analysis, Hillman Solutions is included in InvestingPro’s extensive Pro Research Reports covering over 1,400 US equities.