UPDATE: Goldman Sachs Starts Hayward Holdings Inc (HAYW) at Buy

April 6, 2021 2:41 AM EDT
Get Alerts HAYW Hot Sheet
Price: $16.40 +0.18%

Rating Summary:
    7 Buy, 1 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 18 | Down: 20 | New: 68
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(Updated - April 6, 2021 4:47 AM EDT)

Goldman Sachs analyst Brian Lee initiates coverage on Hayward Holdings Inc (NYSE: HAYW) with a Buy rating and a price target of $27.00.

The analyst comments "We see several favorable attributes supporting a positive view on the stock: (i) 6%-8% sales CAGR through 2023 with near-term growth accelerating to double-digit levels owing to WFH tailwinds, (ii) significant exposure to recurring, aftermarket sales with 75% of sales coming from existing pools that require ongoing maintenance, repairs and upgrades — a dynamic which has led to HAYW having only one down year in sales since 2012, and (iii) secular trends supporting greater spending on the pool pad with average equipment spending per pool having doubled over the past 10 years, owing to greater technology advancements (variable-speed pumps, LED lights automation) that improve the pool user experience but come at a premium ASP. Against this backdrop of solid, stable growth we forecast HAYW to maintain a leading share position given its pricing power and breadth of technology portfolio, with industry-leading EBITDA margins in the high-20% range seeing modest expansion through 2023 and driving an earnings growth CAGR of ~12% through 2023."

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

Shares of Hayward Holdings Inc closed at $17.04 yesterday.


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