KeyBanc raises Acushnet stock price target on tariff mitigation outlook

Published 08/08/2025, 13:36
KeyBanc raises Acushnet stock price target on tariff mitigation outlook

Investing.com - KeyBanc has increased its price target on Acushnet Holdings (NYSE:GOLF) to $85.00 from $80.00 while maintaining an Overweight rating on the stock. The new target represents potential upside from the current price of $77.18, though InvestingPro data suggests the stock may be trading above its Fair Value. The company boasts strong fundamentals with a "GOOD" Financial Health score and has maintained dividend payments for 9 consecutive years.

The adjustment follows Acushnet’s report of adjusted EBITDA of $339.82 million that exceeded expectations, supported by slightly stronger top-line performance compared to consensus estimates. With a market capitalization of $4.54 billion and revenue of $2.45 billion in the last twelve months, the company maintains healthy profit margins of 48.21%. While the company did not formally update its fiscal year 2025 sales and adjusted EBITDA guidance amid tariff and macroeconomic uncertainties, it indicated expectations for low-single-digit revenue growth in the second half of the year. For deeper insights into Acushnet’s financial health and growth prospects, InvestingPro offers additional analysis through its comprehensive Pro Research Report.

Acushnet now anticipates an estimated fiscal year 2025 gross tariff impact of approximately $35 million at current rates, significantly lower than its previous estimate of approximately $75 million. Management expects to offset more than 50% of this impact in the second half of 2025.

Looking further ahead, the company expressed confidence in its ability to mitigate 100% of its China tariff exposure at some point in fiscal year 2026. China represents approximately 70% of the fiscal year 2025 tariff impact for Acushnet.

KeyBanc attributed Acushnet’s underlying resilience partly to the durability of the golf industry, noting that global rounds on a playable hour basis are up year-to-date. The firm cited favorable long-term dynamics including dedicated golfers, widening demographics, and customer retention as factors warranting a premium valuation for the stock. This resilience is reflected in the company’s strong financial metrics, including a return on equity of 27% and a moderate debt level. Subscribers to InvestingPro can access over 10 additional key insights and detailed valuation metrics for Acushnet Holdings.

In other recent news, Acushnet Holdings Corp . reported its second-quarter 2025 earnings with a mix of results. The company announced earnings per share of $1.25, which was below the anticipated $1.32, resulting in a 5.3% negative surprise. On a positive note, Acushnet’s revenue slightly exceeded expectations, coming in at $720.5 million compared to the forecasted $717.39 million. These developments are part of the company’s ongoing financial performance updates. Analysts had expected different outcomes, highlighting the importance of closely monitoring earnings and revenue figures. The earnings results are crucial for investors as they assess the company’s financial health and future prospects. While there were no significant upgrades or downgrades from analysts, these earnings figures provide a clear picture of Acushnet’s recent financial standing.

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