Roth Capital Reduces Target Price on Dorman Products (DORM) to $162

Core Viewpoint - Dorman Products Inc. is identified as one of the most undervalued stocks on NASDAQ, despite a recent target price reduction by Roth Capital, which maintains a Buy recommendation on the stock [1][4]. Financial Performance - Dorman Products reported Q4 earnings of $2.17 in diluted adjusted earnings per share, which is 1.4% lower compared to Q4 2024 but exceeded the street consensus of $2.12 [2]. - The "Heavy Duty" segment experienced growth in volumes and expanded operating profit margins, contributing to the earnings beat [3]. - The "Light Duty" segment remained stable with flat revenue year-over-year, while the "Specialty Vehicle" segment faced challenges due to weak consumer spending and increased costs, leading to margin contraction [3]. Future Guidance - Management's guidance for FY 2026 projects revenue growth of 7% to 9%, but diluted adjusted earnings per share are expected to decline by 4% to 9%, indicating continued pressure on margins [4]. - The projected diluted EPS range for FY 2026 is between $8.10 and $8.50, significantly below the consensus estimate of $9.44 [4]. Company Overview - Dorman Products Inc. specializes in supplying automotive replacement and upgrade parts for the motor vehicle aftermarket industry and is based in Colmar, PA [5].