DA Davidson cuts Malibu Boats stock price target to $33 from $43

Published 03/06/2025, 11:10
DA Davidson cuts Malibu Boats stock price target to $33 from $43

On Tuesday, DA Davidson analysts lowered the price target for Malibu Boats stock (NASDAQ: MBUU) to $33 from the previous $43, while maintaining a Neutral rating. This adjustment comes as the company navigates a challenging retail environment, reflected in the stock’s significant 33% decline over the past six months. According to InvestingPro data, seven analysts have recently revised their earnings estimates downward.

Malibu Boats recently reported its fiscal third-quarter results and revised its guidance for fiscal year 2025. The company cited sluggish retail sales entering the main selling season as a primary reason for the negative revision.

Despite these challenges, Malibu Boats is managing factors within its control. The broader macroeconomic environment, however, remains less than ideal for a significant recovery in the sector, according to DA Davidson analysts.

The new price target is based on an enterprise value to EBITDA multiple of 6.0 times the estimated fiscal year 2026 EBITDA of $105.5 million, compared to the consensus estimate of $111.3 million.

Malibu Boats shares have remained relatively stable following the announcement of its fiscal third-quarter results and the updated guidance.

In other recent news, Malibu Boats Inc (NASDAQ:MBUU). reported its third-quarter 2025 earnings, showcasing a revenue increase to $228.7 million, slightly above the forecast of $227.87 million. Despite this positive revenue performance, the company missed its earnings per share (EPS) expectations, reporting $0.66 against a forecast of $0.71. The company experienced a 12.4% increase in net sales and a 119.4% rise in GAAP net income, although it revised its full-year guidance to anticipate a 3-5% decrease in net sales. The earnings report reflects mixed results, with revenue growth somewhat overshadowed by the EPS shortfall. Analysts from firms like Baird and Texas Capital Securities have been engaging with Malibu Boats on various aspects, including dealer inventories and market conditions. Malibu Boats is actively managing its dealer inventories and assessing potential tariff impacts, while also focusing on innovation and dealer health. Additionally, the company has highlighted its robust financial position, with over $39 million in cash on hand and significant untapped liquidity on its credit facility.

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