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Investing.com - Stifel has reiterated its Buy rating on Hayward Holdings Inc (NYSE:HAYW) with an $18.00 price target, following investor meetings with the company’s management team earlier this week. The stock, currently trading at $16.06 with a market cap of $3.48 billion, appears fairly valued according to InvestingPro analysis.
The firm expressed confidence in Hayward’s commercial initiatives aimed at strengthening its position in the pool category while maintaining its margin profile through ongoing strategic efforts.
Stifel noted that Hayward has performed well during the COVID-related market adjustments, achieving margin recovery despite weak volumes, and maintaining necessary investments throughout the challenging period. The company maintains impressive gross profit margins of 51% and operates with strong liquidity, as indicated by a healthy current ratio of 2.84.
The research firm’s fiscal year 2025 revenue and EBITDA estimates for Hayward remain at the high end of the company’s guidance range, reflecting confidence in the company’s performance outlook. InvestingPro subscribers can access 7 additional key insights about Hayward’s financial health and growth potential in our comprehensive Pro Research Report.
For fiscal year 2026, Stifel projects mid-single-digit revenue growth for Hayward, even while allowing for a slower recovery in the broader pool category, citing the company’s "idiosyncratic advantages" as key growth drivers. This outlook aligns with the company’s recent revenue growth of 8.77%.
In other recent news, Hayward Holdings Inc. reported impressive second-quarter 2025 earnings, surpassing expectations with an earnings per share of $0.24 against a forecast of $0.23. The company also exceeded revenue projections, reporting $299.6 million compared to the anticipated $290.49 million. Additionally, S&P Global Ratings revised its outlook on Hayward Holdings to positive from stable, citing solid operating performance and a 6.3% increase in sales year over year. This growth was attributed to effective pricing strategies and the acquisition of ChlorKing. In another development, Stifel raised its price target for Hayward Holdings to $18, maintaining a Buy rating. The firm highlighted the company’s pricing power and strong margin structure as key factors in its decision. Stifel also noted consistent signs of improving discretionary demand supporting their outlook. These developments reflect the company’s ongoing positive trajectory in the market.
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