Patrick Industries Delivers Impressive Q1 Performance, Roth MKM Analyst Upgrades Price Target

Roth MKM's Scott Stember raised their price target on Patrick Industries (NASDAQ: PATK) by 5% from $120 to $126 on 2024/05/06. The analyst reiterated their Strong Buy rating on the stock.

According to Stember, Patrick Industries reported an impressive performance in the first quarter of 2024, surpassing expectations despite challenges faced in the recreation and leisure industry. The company achieved commendable operating profit, with a modest 4% sales growth. Stember highlighted the disciplined operating management, market share growth, and strategic acquisition and diversification strategy as key factors contributing to Patrick Industries' success.

In Q1 2024, Patrick Industries reported earnings per share (EPS) of $1.79, beating both the Zacks Consensus Estimate of $1.32 and the EPS of $1.35 in Q1 2023 by 32.6%. The company's revenue for the quarter was $933.49 million, surpassing the Zacks Consensus Estimate by 12.3% and exceeding the revenue of $900.1 million in Q1 2023 by 3.7%. Additionally, the company's EBITDA grew by 14% year-over-year, reaching $111 million.

CEO Andy Nemeth expressed his satisfaction with the company's performance, attributing it to their focus on providing quality service, delivering value-added solutions, and investing in higher-engineered products. Nemeth also emphasized the benefits of Patrick Industries' diversification strategy and their ability to quickly scale to meet original equipment manufacturer (OEM) needs.

Following the impressive quarterly results, all top-rated analysts currently rate PATK as a Strong Buy or Buy, with no analysts recommending a Hold or selling the stock. This indicates strong confidence in Patrick Industries' future prospects.

Since the release of the company's quarterly report on May 2, 2024, the stock price has risen by 2.6%. Year-over-year, the stock has experienced a substantial increase of 72.2%. During this period, Patrick Industries has outperformed the S&P 500, which has seen a growth of 25.2%.

Scott Stember, the analyst who raised the price target on Patrick Industries, is ranked in the top 24% of Wall Street analysts by WallStreetZen. With an average return of 5.8% and a win rate of 58.8%, Stember specializes in the Consumer Cyclical and Industrials sectors.

Patrick Industries, Inc. is a manufacturing and distribution company that produces components, building products, and materials for various markets, including recreational vehicles, marine, manufactured housing, and industrial sectors. The company operates in the United States, China, and Canada.

In the Manufacturing segment, Patrick Industries manufactures and sells a wide range of products, including furniture, shelving, wall and countertop products, cabinets, fiberglass bath fixtures, tile systems, sound systems, flooring products, and more. The Distribution segment focuses on distributing pre-finished wall and ceiling panels, electronic and audio system components, marine accessories, wiring products, and other building materials.

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