In a remarkable turnaround, Latham Group Inc. (SWIM) stock has soared to a 52-week high, reaching $7.33, with a market capitalization of $843 million. According to InvestingPro data, the company maintains a healthy current ratio of 2.44, indicating strong liquidity. This peak reflects a significant recovery and investor confidence, with InvestingPro showing a remarkable 146.39% year-to-date return. The surge to this new high-water mark is a testament to the company's resilience and the positive sentiment surrounding its growth prospects and strategic initiatives. Investors are closely monitoring Latham Group's performance, as the stock's impressive ascent over the year continues to draw attention in the market. For deeper insights into SWIM's valuation and growth potential, access the comprehensive Pro Research Report, available exclusively with an InvestingPro subscription.
In other recent news, Latham Group, a leading in-ground pool manufacturer, has reported a year-over-year decrease of 6.4% in net sales to $150.5 million in Q3 2024, despite an improved gross margin due to cost reduction initiatives. The acquisition of Coverstar Central is expected to enhance net sales and adjusted EBITDA margins. Furthermore, the company has refined its full-year guidance, projecting net sales to be between $500 million and $510 million and adjusted EBITDA between $77 million and $83 million.
Craig-Hallum initiated coverage on Latham Group, bestowing a Buy rating and setting a price target of $10.00. The firm's analysis suggests that the industry for pool sales is poised for a rebound in FY25, anticipating growth spurred by lower interest rates, increased financing options, and a rise in home equity. In contrast, BofA Securities has adjusted its price target for Latham Group to $5.30, maintaining an underperform rating, expressing caution due to anticipated muted recovery in 2025.
Latham Group is strategizing to enhance fiberglass pool market penetration in states such as Florida, Texas, Arizona, and California, where fiberglass pool sales currently represent only about 15% of the company's sales. The company's strategy includes converting concrete pool dealers to fiberglass, adding new dealers, and improving the productivity of existing dealers. These are among the recent developments in the company's operations.
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