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On Friday, KeyBanc Capital Markets adjusted its financial outlook on Acushnet Holdings Corp (NYSE: NYSE:GOLF), reducing the price target from $80.00 to $77.00. Despite the decrease, the firm maintained its Overweight rating on the company’s stock. Currently trading at a P/E ratio of 19.6x and commanding a market cap of $3.9 billion, Acushnet, known for its golf products and brands, reported adjusted EBITDA that surpassed expectations, although its revenue was slightly below forecasts. According to InvestingPro analysis, the stock appears to be trading near its Fair Value.
The company’s adjusted EBITDA came in at $3.3 million above KeyBanc’s model, with last twelve months EBITDA reaching $360.2 million. Acushnet also provided its FY25 adjusted EBITDA guidance, which aligns closely with the consensus at the midpoint, estimated at approximately $413 million. Their sales guidance was marginally below expectations but was considered nearly consistent when excluding a $35 million foreign exchange impact. The company maintains strong financial health with a current ratio of 2.06, indicating robust liquidity.
KeyBanc’s analysis highlighted Acushnet’s relative business resilience, attributing it to the enduring popularity of golf and the company’s strategic focus on avid golfers. This resilience is reflected in the company’s solid financials, including a healthy gross profit margin of 48.3% and consistent dividend payments maintained for eight consecutive years. Positive trends and momentum within the sport were also noted as factors contributing to the company’s stable performance.
The research firm believes that the long-term dynamics of the industry, such as the increase in off-course golf experiences and the loyalty of dedicated golfers, justify a premium valuation for Acushnet Holdings. The lowered price target reflects slightly revised downward estimates for FY25, but KeyBanc’s overall assessment of the company remains positive. For deeper insights into Acushnet’s financial health and growth prospects, investors can access comprehensive analysis and additional ProTips through InvestingPro.
In other recent news, Acushnet Holdings Corp reported its fourth-quarter 2024 earnings, surpassing analyst expectations with an earnings per share (EPS) of -$0.02, compared to the anticipated -$0.33. The company also exceeded revenue forecasts, posting $455.2 million against the expected $448.76 million, marking an 8% year-over-year increase in sales for the quarter. For the full year, Acushnet reported sales of $2.46 billion, representing a 4% gain on a constant currency basis. The company’s growth was supported by a robust market for golf equipment and an expanding golfer base, which grew by 6% to 28.1 million in 2024.
In terms of shareholder returns, Acushnet distributed $227 million through dividends and share repurchases, and the company announced a 9% increase in its quarterly dividend payout for 2025. Looking ahead, Acushnet projects net sales between $2.485 billion and $2.535 billion for 2025, anticipating a 2.6% to 4.6% growth in constant currency. The company plans to continue investing in product innovation and global expansion, with upcoming launches including the Pro V1 golf ball and new putter and iron models.
Despite these positive developments, Acushnet faces potential challenges, such as supply chain transitions and economic conditions. The company is also implementing a new global ERP system, which requires substantial investment and carries execution risks. Analyst firms have not indicated any recent upgrades or downgrades for Acushnet’s stock.
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