Takes from DORM Meetings at Wells Fargo's Industrials Conference

研报英文原文证据摘录

Takes from DORM Meetings at Wells Fargo's Industrials Conference

Takes from DORM Meetings at Wells Fargo's Industrials Conference Equity Research

Investment Thesis, Valuation and Risks

Dorman Products, Inc. (DORM)

Investment Thesis

We see DORM as a compelling way to play the attractive automotive aftermarket, and our Overweight rating is predicated on solid light

duty sales trends (with potential improvement in specialty vehicle), ongoing share gains, and opportunities for additional margin expansion

(post-NT tariff headwinds). We believe DORM’s new/innovative products provide unique competitive advantages.

Target Price Valuation for DORM

Our $140 price target is based on ~15x our FY27 EPS, which represents a slight discount relative to the prior 5-year NTM P/E average (of

~16.5x), but execution is solid, share gains are ongoing, and benefits from innovation efforts/non-discretionary demand are intact. This

implies ~11x our FY27 EBITDA.

Risks to Our Price Target and Rating for DORM

Risks to our thesis include competition, deceleration of underlying market drivers, execution, M&A, macro factors, product cost inflation,

tariffs, changes in global trade policy, labor costs, and weather.

Monro, Inc. (MNRO)

We see an energized management team, ongoing self-help initiatives, and a large/resilient category, but await a cleaner entry point (Equal

Weight-rated), given historically shaky execution and lingering macro headwinds (trade down, deferral of purchases, etc.). We believe

MNRO could improve the in-store experience/better meet consumer demand as initiatives resonate.

Target Price Valuation for MNRO

Our $16 price target is based on ~6x our FY28 EBITDA (or ~32x EPS), which is a discount to the prior 5-year NTM EV/EBITDA average (of