BofA Securities Double Downgrades Latham Group Inc. (SWIM) to Underperform on Weak Pool Construction

BofA Securities analyst Rafe Jadrosich downgraded Latham Group Inc. (NASDAQ: SWIM) from Buy to Underperform with a price target of $2.60 (from $4.50).

The analyst comments "SWIM initiated 2024E guidance with the midpoint of revenue ($490M to $52OM) and adjusted EBITDA ($60M to 570M), roughly 8% and 35% below our previous expectations. We are downgrading to Underperform given: 1) a softer than expected start to 2024, 2} lower expectations for new pool construction in 2024, 3} operating deleverage, and 4) limited free cash flow generation. We lower our2024E/2025E adjusted EBITDA by 36%/31%. We also lower our PO to $2.60 (from $4.50}, now based on 6.0X 2025E EV/EBITDA (vs. 7.OX 2024E EV/EBITDA). as we roll forward our multiple and take into account the weaker growth outlook.

For an analyst ratings summary and ratings history on Latham Group Inc. click here. For more ratings news on Latham Group Inc. click here.

Shares of Latham Group Inc. closed at $3.28 yesterday.

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