Skyline Corp. (SKY) Stock Forecast & Price Target

Champion Homes Inc. has demonstrated a robust performance with a year-over-year increase in average selling price (ASP) for their U.S. manufactured homes, achieving $94.3, which marks a 5% improvement despite a slight quarterly decline. The company is poised for further growth as an anticipated improvement in the lending environment could enhance their financial estimates and promote multiple expansions. Additionally, the positive inflection in shipment volumes has contributed to increased operating leverage, enabling Champion Homes to expand margins even amid the challenges posed by inflation in input costs.

Champion Homes Inc. has experienced a decline in both its EBITDA and adjusted EBITDA margins, with the EBITDA percentage falling to 10.5%, representing a 100 basis points decrease year-over-year. Financial projections for fiscal year 2026 indicate a further decline in EBITDA margins, with a notable 180 basis points drop attributed to SG&A percentage deleverage resulting from weaker sales. Additionally, despite a projected revenue increase of 4% year-over-year for FY'26, the significant reduction in the EBITDA estimate by 17% to $273 million highlights concerns over ongoing margin pressure and a challenging demand environment.