Pool Corp (POOL) Sinks Following Cautious Jefferies Survey

Pool Corp (NASDAQ: POOL) shares are down 8% after Jefferies analyst Stephen Volkmann lowered estimates and the price target on the stock after its proprietary B2B survey of pool builders showed 75% of respondents indicating that they expected demand to be flat or down once current backlogs were depleted.

The firm cut the price target to $400.00 (from $485.00) while maintaining a Hold rating.

"With 75% of respondents in our recently conducted proprietary B2B survey of pool builders survey indicating that they expected demand to be flat or down once current backlogs were depleted, we are taking a more cautious view on our growth estimates for POOL through 2024," the analyst commented. "We had previously forecasted mid-single-digit growth in both 2023/2024 which we are forecasting lower to low-single digit growth in 2023 (supported by a pricing tailwind from 2022) and a 5% decline in 2024. The lowered outlook reflects the more tempered outlooks pool builders have indicated as current backlogs are depleted in 1H23."

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