Wedbush Reiterates Outperform on Pool Corp. (POOL) Following Channel Checks

October 3, 2016 8:31 AM EDT
Get Alerts POOL Hot Sheet
Price: $102.41 +2.55%

Rating Summary:
    5 Buy, 2 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 28 | Down: 20 | New: 17
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Wedbush reiterated an Outperform rating and $115.00 price target on Pool Corp (NASDAQ: POOL) following channel checks. The checks imply 3Q sales growth of 7.8% or 100bps above expectations. POOL is scheduled to release 3Q16 earnings results on October 20, 2016 with a conference call at 11am EDT.

Analyst Al Kaschalk commented, "With scale and as a value-added distributor of swimming pool supplies, equipment and related outdoor leisure products (Blue Business) and a recurring cash flow model, we view shares of Pool Corporation (POOL) as a core holding for mid-capitalization portfolios. POOL’s estimated ~44% market share lends itself to scale advantages, including purchasing and distribution efficiencies when combined with a large installed base of swimming pools, growth in US singlefamily housing, and its growing Irrigation and Landscape (Green business) segment; we look for POOL’s EPS CAGR to be in the 15-18% range over the midterm. With high conversion of net income to cash flow from operations, management is able to fund a disciplined acquisition strategy and provide consistent returns to shareholders via growing dividend and share repurchases."

For an analyst ratings summary and ratings history on Pool Corp click here. For more ratings news on Pool Corp click here.

Shares of Pool Corp closed at $94.52 yesterday.



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