UPDATE: Goldman Sachs Starts Hayward Holdings Inc (HAYW) at Buy
- Wall Street slips off record highs, Tesla drops after fatal crash
- IBM (IBM) Tops Q1 EPS by 14c, Revenue Beats
- Tesla's (TSLA) Musk says data logs from crashed vehicle show Autopilot was not enabled, car did not purchase FSD
- Bitcoin (BTC) Price Fell 20% Off the Highs Over the Weekend as Markets Got 'Too Excited' About Coinbase (COIN), Says Mike Novogratz
- GameStop (GME) CEO Gets the Axe as Ryan Cohen Continues to Make His Mark, Analyst Says Co. Will Likely Look to Tech Sector for New Hires
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."
Shares of Hayward Holdings Inc closed at $17.04 yesterday.
You May Also Be Interested In
- UPDATE: Wells Fargo Starts Ballard Power Systems (BLDP) at Equal Weight
- UPDATE: UPDATE: Wells Fargo Starts FuelCell Energy (FCEL) at Underweight
- UPDATE: Goldman Sachs Downgrades Yum China Holdings (YUMC) to Buy
Create E-mail Alert Related CategoriesAnalyst Comments, New Coverage
Related EntitiesGoldman Sachs, Earnings
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!