MarineMax stock holds buy rating, $35 target from DA Davidson

Published 27/01/2025, 16:54
MarineMax stock holds buy rating, $35 target from DA Davidson

On Monday, MarineMax Inc . (NYSE:HZO) shares experienced an uptick following the company's announcement of surpassing first-quarter 2025 earnings expectations and maintaining their full-year 2025 earnings per share (EPS) and EBITDA guidance. The stock has shown strong momentum with a 9.32% gain over the past week, though InvestingPro data indicates significant price volatility. Despite facing challenges from recent storms and hurricanes, the leading recreational boat and yacht retailer managed to report retail sales that remained relatively unchanged from the previous year.

DA Davidson analyst Brandon Rolle emphasized the resilience of MarineMax's performance in the first quarter, which was in line with the firm's fourth-quarter 2024 Boat Industry Checks. Rolle highlighted that, even with the adverse weather conditions impacting their first-quarter results, MarineMax delivered consistent retail sales figures. With current EBITDA of $216.36 million and a market cap of $704.38 million, this performance underlines the company's ability to navigate through the headwinds faced in the early months of 2025.

Rolle's continued confidence in MarineMax is evident in the reiteration of a Buy rating and a price target of $35.00. He pointed out that the company possesses the "freshest inventory in the industry," which supports their favorable position. The price target set by Rolle is grounded in a valuation approach, applying an enterprise value to EBITDA (EV/EBITDA) multiple of 9.0 times the firm's fiscal year 2026 EBITDA estimate of $203.1 million. According to InvestingPro, analyst targets range from $34 to $43, with a strong consensus recommendation of 1.44 (where 1 is Strong Buy). Get access to 8 additional exclusive ProTips and comprehensive valuation metrics with an InvestingPro subscription.

MarineMax's commitment to their fiscal year 2025 guidance, despite the initial setbacks, reflects their confidence in the year's prospects and their operational capabilities. Rolle's analysis suggests that the guidance set by the company is attainable and supports the positive outlook for MarineMax's stock.

The company's performance and DA Davidson's reiterated rating and price target provide a clear signal to the market regarding MarineMax's stability and potential for growth. The firm's analysis is based on a thorough examination of MarineMax's financials and industry position, offering investors a detailed perspective on the company's valuation.

In other recent news, MarineMax has reported an increase in its fiscal first-quarter earnings, surpassing analyst estimates, despite a decrease in revenue. The recreational boat and yacht retailer posted an adjusted earnings per share of $0.17, beating analyst projections of a $0.17 loss. However, revenue fell by 11.2% year-over-year to $468.5 million, which was below the consensus estimate of $485.52 million. MarineMax has also expanded its gross profit margin by 290 basis points to 36.2%, a development attributed to promotional activity, sales mix, and contributions from higher-margin businesses.

MarineMax received a reaffirmed Buy rating from Benchmark analysts. The company's sales for the quarter were $468.5 million, marking an 11% decrease compared to the same period last year. This decline in sales was attributed to a combination of adverse weather events and a challenging retail landscape.

The company reaffirmed its fiscal 2025 guidance, projecting adjusted earnings of $1.80 to $2.80 per share, aligning with analyst expectations of $2.27 per share. MarineMax ended the quarter with an inventory of $1.04 billion, up from $876.2 million the previous year, and expressed its focus on expense reduction and maintaining a strong balance sheet in fiscal 2025. These are recent developments in the company's financial performance, indicating resilience amid challenging market conditions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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