Research on Heavitree Brewery (HVT) from Sidoti & Company
Last week, we hosted a fireside chat with HVT CEO Steve Burdette, CFO Richard Hare and AVP, Financial Reporting Tiffany Hinkle at the Sidoti September 2026 investor conference. Management was upbeat about its expanding design service penetration, which we think will be one of the key revenue growth catalysts along with additional store growth. We also think Haverty will benefit from favorable leverage of its current distribution infrastructure and its relatively fixed cost structure. That said, with higher cost assumptions (especially for fuel and transportation), we temper our near-term margin forecasts and now expect 2026 EPS of $1.77 (was $1.83) and now project EPS of $3.00 in 2027 (was $3.02). Our $36 price target is based on 12x our refined 2027 EPS estimate of $3.00. Our moderate risk rating reflects our assumption for a profit recovery in 2026 and 2027, supported by HVT's solid balance sheet and ample free cash flow generation.
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