Hayward Holdings stock price target raised to $18 by Stifel on pricing power

Published 05/09/2025, 11:24
Hayward Holdings stock price target raised to $18 by Stifel on pricing power

Investing.com - Stifel has raised its price target on Hayward Holdings Inc (NYSE:HAYW) to $18.00 from $17.50 while maintaining a Buy rating on the stock. The company, currently trading at $16.01 with a market capitalization of $3.47 billion, has shown strong financial performance.

The firm cited Hayward’s pricing power and ability to build upon its "top tier margin structure" as key factors behind the decision. This is evidenced by the company’s impressive gross profit margin of 51% and strong financial health score. Stifel also noted "consistent signs of improving discretionary demand" providing additional support for its outlook.According to InvestingPro, there are several more key insights available about Hayward’s financial strength and growth potential, including detailed analysis in the comprehensive Pro Research Report.

Stifel derived the new target price by assigning a 13x EV/FY27E EBITDA multiple, which represents a premium to residential equipment manufacturers. The firm believes the current share price continues to undervalue the company’s fundamental strengths, supported by its attractive PEG ratio of 0.57 and current EV/EBITDA of 14.65x.

Stifel will be hosting Hayward management for a full day of meetings on Monday, September 8, 2025. The meetings will include CEO Kevin Holleran, CFO Eifion Jones, Head of Business Development Stuart Baker, and VP IR and FP&A Kevin Maczka.

The firm has prepared a primer book for the meetings that includes a company overview, an analysis of the pool industry, modeling assumptions, data from Stifel’s Proprietary Pool Professionals Survey, information from Stifel’s New Pool Construction Permit Update, and a detailed list of investor questions.

In other recent news, Hayward Holdings Inc. reported impressive earnings results for the second quarter of 2025. The company posted an earnings per share of $0.24, surpassing the analysts’ forecast of $0.23. Hayward Holdings also exceeded revenue expectations, reporting $299.6 million compared to the projected $290.49 million. In addition to its earnings performance, S&P Global Ratings revised its outlook on Hayward Holdings to positive from stable. This revision was based on the company’s solid operating performance in the first half of fiscal 2025, with sales increasing by 6.3% year over year through June 28. The growth was attributed to strategic pricing and the acquisition of ChlorKing. These developments reflect a period of strong performance for Hayward Holdings.

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