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On Monday, DA Davidson analyst Brandon Rolle adjusted the price target for MasterCraft Boat Holdings (NASDAQ:MCFT) to $22.00, down from $23.00, while keeping a Neutral rating on the stock. The revision follows MasterCraft’s recent second-quarter earnings release for fiscal year 2025, where the company reported earnings that surpassed expectations and provided a narrowed forecast for the full fiscal year 2025. According to InvestingPro data, the stock has shown strong momentum with a 10.71% return over the past week, despite analysts recently revising earnings expectations downward.
MasterCraft’s stock experienced an uptick following the earnings announcement, which included a positive surprise for the quarter. Despite this, the company has observed a lukewarm retail environment and varying results at recent boat shows. These observations align with DA Davidson’s latest checks within the boat industry. InvestingPro analysis reveals concerning fundamentals, including weak gross profit margins of 14.9% and an expected revenue decline of 21% for fiscal year 2025.
The company also indicated that it still needs to reduce field inventory in the second half of fiscal year 2025. Taking these factors into account, Rolle has decided to maintain the Neutral rating for MasterCraft but has reduced the price target to $22.00. This new target is based on a price-to-earnings (P/E) multiple of 13.0 times DA Davidson’s fiscal year 2026 earnings estimate of $1.70 per share, which contrasts with the consensus estimate of $1.50.
The lowered price target reflects the company’s need to destock and the current state of the retail market, as well as the anticipated earnings for the upcoming fiscal year. MasterCraft’s management has narrowed its guidance assumptions for fiscal year 2025, which seems to have been factored into the new price target set by DA Davidson.
In other recent news, MasterCraft Boat Holdings experienced a notable adjustment in its financial outlook. DA Davidson analyst Brandon Rolle revised the company’s price target from $23.00 to $22.00, while maintaining a neutral stance on the stock. This modification followed MasterCraft’s announcement of a second-quarter earnings beat for fiscal year 2025 and a refinement of their full-year guidance.
MasterCraft’s earnings surpassed expectations, leading to a refined forecast for FY25. The company also provided insights into the current retail environment, describing it as lukewarm and noting a mixed performance at recent boat shows, which aligns with DA Davidson’s latest checks within the boat industry.
Despite these positive developments, MasterCraft still faces the challenge of addressing the destocking of field inventory during the second half of fiscal year 2025. These factors contributed to DA Davidson’s decision to maintain the neutral rating and to revise the price target downward. The new target is based on a price-to-earnings (P/E) multiple of 13.0 times the firm’s fiscal year 2026 earnings estimate of $1.70 per share. This is a recent development that underscores the challenges and expectations ahead for MasterCraft in the latter half of fiscal year 2025.
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