Word Of Ford Range Raptor May Have Boosted Shares Of Fox Factory

Rumors of a potential Ford Motor Company (NYSE: F) Ranger Raptor prototype spread to the stock market on Wednesday morning.

After hearing the rumors, D.A. Davidson analyst Andrew Burns reiterated his Neutral rating and $34 price target on Fox Factory Holding Corp (NASDAQ: FOXF).

“In recent days, several auto news sources have posted articles and "spy photos" of a potential Ford Ranger Raptor. We believe this has been a contributing factor to today's stock move (+6%),” Burn said. “The leaked Ranger pictures began circulating on Monday, and appear to show a right-hand drive new-generation Ford Ranger with wider fenders, a shaved bumper similar to the F-150 Raptor, and beefier off-road tires.”

Burns also highlighted Fox Factory’s double-digit annual growth target.

“Given the success of the current Raptor, it is logical to think Ford is considering broadening the franchise. The re-launched Ranger would be a clear candidate for a Raptor line extension and we believe FOXF would have a high probability of being included on the new line.”

Thus, the Ranger could help catalyze annual growth. 

While this is still a rumor, Burns noted the Ranger could be launched in 2019 and the Raptor version might just be part of an initial launch.

Fox Factory closed Thursday at $35.