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On Thursday, KeyBanc Capital Markets adjusted its outlook for Acushnet Holdings Corp (NYSE: NYSE:GOLF), the parent company of leading golf brands such as Titleist and FootJoy. Analyst Noah Zatzkin revised the price target downward to $70.00 from the previous $77.00, while reaffirming the Overweight rating on the company’s stock. The stock, currently trading at $59.07, sits near its 52-week low of $55.31, according to InvestingPro data.
Zatzkin’s reassessment comes amid a period of macroeconomic uncertainty and anticipated market adjustments. Despite these headwinds, Acushnet Holdings is still considered a premium brand within KeyBanc’s coverage universe. The analyst’s positive stance on the company remains intact, citing its strong positioning in the golf industry. InvestingPro data supports this view, showing the company maintains good financial health with liquid assets exceeding short-term obligations and a moderate debt level. The company’s market capitalization stands at $3.56 billion, with annual revenues of $2.46 billion.
The revision in the price target reflects a cautious near-term outlook due to additional tariff pressures and a conservative approach to forward estimates. Zatzkin noted that while the broader golf sector is not completely shielded from market fluctuations, Acushnet’s prospects for reward still appear favorable when considering its financial metrics, specifically its forward EBITDA multiple. The company has demonstrated strong shareholder returns, maintaining dividend payments for 9 consecutive years with a current yield of 1.59%. InvestingPro analysis reveals 13 additional key insights about Acushnet’s financial position and market performance, available in the comprehensive Pro Research Report.
The new price target of $70.00 is based on approximately 10.5 times the company’s projected earnings before interest, taxes, depreciation, and amortization (EBITDA) for the fiscal year 2026. This adjustment takes into account the current market conditions and the need to factor in the potential impact of tariffs and a cautious short-term perspective.
Investors and market watchers will be keeping a close eye on Acushnet Holdings as it navigates the evolving economic landscape, with KeyBanc’s latest analysis providing a current benchmark for the company’s valuation.
In other recent news, Acushnet Holdings Corp reported its fourth-quarter 2024 earnings, surpassing 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 Q4 sales. For the full year, Acushnet reported sales of $2.46 billion, representing a 4% gain on a constant currency basis. KeyBanc Capital Markets adjusted its financial outlook on Acushnet, reducing the price target from $80.00 to $77.00, while maintaining an Overweight rating. Despite a slight revenue shortfall, Acushnet’s adjusted EBITDA surpassed expectations, with guidance aligning closely with consensus estimates. Meanwhile, JPMorgan reiterated its Underweight rating on Acushnet with a price target of $64.00, citing a notable decrease in golf rounds played due to unfavorable weather conditions. These recent developments highlight the company’s financial performance and market dynamics as it navigates through varying industry challenges.
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