Tigress Financial Partners Upgrades Acushnet Holdings (GOLF) to Buy, 'strong brand equity and industry-leading products'

Tigress Financial Partners analyst Ivan Feinseth upgraded Acushnet Holdings (NYSE: GOLF) from Neutral to Buy with a price target of $62.00.

The analyst comments "We are upgrading our rating from Neutral to Buy on GOLF and increasing our target price to $62 per share as the company’s strong brand equity and industry-leading products, combined with an upcoming cadence of new product introductions, should drive further share price gains. GOLF is well-positioned to gain from the ongoing post-pandemic growth in golf, including rounds played and growth in player population, especially from younger and new golf players. GOLF is continuing to see an acceleration in revenue growth, having recently reported Q4 revenue up 6.4% Y/Y to $447 million and full-year 2022 revenue increasing 5.7% Y/Y to a record $2.27 billion driven by strong growth across its key leading brands of Titleist golf balls, golf clubs, FootJoy golf wear, and Titleist Golf gear. Titleist golf balls continue to be the overwhelming ball of choice of PGA and LPGA Tour players, with Pro V1 golf balls winning all four men’s Major Championships in 2022. GOLF’s strong 2022 results were also driven by double-digit sales growth in Titleist golf club, Titleist gear, and FootJoy golf wear segments driven by a wide range of innovative new products, including new TSR models that quickly became the most-played model on the PGA tour. Growth in Titleist golf clubs was driven by higher sales volumes of SM9 wedges, Phantom X putters, T-Series irons, and the newly introduced TSR drivers and fairways. Higher average selling prices and higher volumes drove growth in Titleist golf balls. Higher average selling prices of footwear and higher sales volumes of apparel drove growth in FootJoy golf wear. Higher average selling prices across all product categories drove growth in Titleist golf gear. GOLF will continue to grow across all of its brands and regions, driven by a series of new product launches, bi-annual new golf ball design introductions, and increased operating efficiencies as its primary raw material partner has increased its capacity and capabilities along with the addition of new suppliers. Custom club production capacity has also been increased to meet growing demand. GOLF’s incredible brand equity, driven by its best-in-class and industry-leading product lines, including FootJoy and Titleist, are major assets and the primary drivers of its premium market valuation. It should continue to drive an increasing Return on Capital, greater Economic Profit, and further shareholder value creation. GOLF also continues to enhance shareholder returns with ongoing dividend increases and share repurchases. We believe further upside exists, and our 12-month target price of $62 a share represents a potential return with dividends of close to 23% from current levels."

For an analyst ratings summary and ratings history on Acushnet Holdings click here. For more ratings news on Acushnet Holdings click here.

Shares of Acushnet Holdings closed at $50.55 yesterday.

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