Craig-Hallum analysts downgraded Xpel (NASDAQ:XPEL) from Buy to Hold, with a new price target of $40.00, following the company’s reported Q1 miss. The quarterly performance was impacted by various macroeconomic challenges, including changing consumer behavior, port closures, and market fluctuations in China.

Although the quarter was not disastrous, it did not meet the high standards that investors have come to expect from XPEL in recent years. Management acknowledged that while April has shown some recovery, there are still many uncertainties for the rest of the year, such as consumers increasingly focusing on incentives for new vehicle purchases rather than upgrades, due to high interest rates and rising car prices.

The outlook for the remainder of the year remains unclear, and competitive pressures might affect the demand for PPF. Consequently, the analysts downgraded the stock to Hold, given the absence of a clear catalyst.