Update shared on 12 Nov 2025
Fair value Decreased 9.78%Legacy Housing's analyst price target has been revised downward from $30.67 to $27.67 per share, as analysts adjusted expectations based on a recent revenue miss and a more cautious outlook following a downgrade to Market Perform.
Analyst Commentary
Bullish Takeaways
- Bullish analysts highlight Legacy Housing’s core business strength, noting its sustained demand within the affordable housing sector.
- They point to the company’s ability to maintain stable gross margins even amid market volatility. This is seen as supporting a foundation for long-term growth.
- There is optimism about management’s capacity to execute on cost controls, which may help offset recent revenue pressures and protect profitability.
Bearish Takeaways
- Bearish analysts express concern regarding the recent revenue miss, which might indicate near-term headwinds in execution or market demand.
- There is caution around the company’s reduced outlook, suggesting possible challenges in capitalizing on growth opportunities in the upcoming quarters.
- Some worry that competitive pressures within the manufactured housing industry could further impact top-line growth and valuation multiples.
- The downgrade to Market Perform signals increasing skepticism about Legacy Housing’s ability to outperform peers in the current environment.
What's in the News
- The Board of Directors approved amendments to Legacy Housing's Bylaws, adding stricter requirements for shareholder derivative actions, clarifying exclusive legal forums, and establishing a jury trial waiver for internal claims (Key Developments).
- Legacy Housing launched the Legacy Ultimate Series as part of its Legacy 250 initiative. This series features an industry-first 8x12 shed storage module and 21 SEER concealed-duct "mini-split" heat pumps for enhanced energy efficiency in upcoming home models (Key Developments).
- Jeffrey M. Fiedelman resigned as Chief Financial Officer effective October 10, 2025. Ronald C. Arrington was appointed as Interim CFO, bringing extensive experience and having previously served in this role (Key Developments).
- Robert Duncan Bates, CEO, resigned effective October 10, 2025. Kenneth E. Shipley, Co-founder and Executive Vice President, was named interim CEO (Key Developments).
Valuation Changes
- Fair Value Estimate: Decreased from $30.67 to $27.67 per share, reflecting a reduction of nearly 10%.
- Discount Rate: Increased slightly from 8.17% to 8.38%, indicating a modest rise in perceived risk or required return.
- Revenue Growth Forecast: Lowered from 3.94% to 3.19%, suggesting more conservative future sales expectations.
- Net Profit Margin: Increased from 32.64% to 37.15%, showing improved profitability projections despite other headwinds.
- Future P/E Ratio: Declined from 13.22x to 11.00x, indicating lower valuation multiples for forward earnings.
Disclaimer
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