Stifel analyst Andrew Carter reiterated a Buy rating and $19.50 price target on Hayward Holdings Inc (NYSE: HAYW).

The analyst commented, "We derive our target price by assigning a 14.5x EV/FY27E EBITDA multiple. Our target price represents a premium to residential-focused equipment manufacturers and discount to top-tier peers. We believe the shares undervalue the advantaged long-term growth prospects stemming from industry pricing power, HAYW’s top-tier margin structure, and the ability to disproportionately capitalize on the pool category’s advantaged long-term growth prospects. We estimate robust pricing with industry pricing power consistently validated through the COVID-rightsizing. We believe our volume outlook is fully rightsized for channel inventory risk and continued softness in pool category discretionary demand with HAYW/equipment manufacturers offering added certainty relative to pool category peers. We estimate roughly 60% of HAYW revenue is driven by “break/fix” with mix benefits/increased content tempering risk around further pressure on new construction/remodel. We believe our margin outlook offers room for error around recent tariffs and likely continued volatility with HAYW sporting the pricing power and supply chain actions to maintain and potentially build upon top-tier margin structure. We estimate increasing optionality from an improving leverage profile potentially enabling consistent return-of-cash beyond FY25 or M&A bolstering HAYW growth prospects."

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Shares of Hayward Holdings Inc closed at $16.97 yesterday.