William Blair analyst Ryan Merkel has maintained their bullish stance on SWIM stock, giving a Buy rating on November 3.
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Ryan Merkel has given his Buy rating due to a combination of factors that suggest potential growth for Latham Group despite current market challenges. The company has shown resilience with its EBITDA performance, which exceeded expectations even though sales figures were slightly below projections. This stability in earnings, amidst a challenging pool market, is seen as a positive indicator.
Additionally, the growth in Florida, a key market for the company, has been impressive, with year-to-date figures showing high single-digit increases. This suggests that Latham Group’s strategic focus on expanding in the sand states is yielding results. Looking ahead, there is potential for continued growth as this strategy unfolds, positioning the company well for future success even if new pool construction remains subdued in the near term.
Merkel covers the Industrials sector, focusing on stocks such as QXO Inc, Aaon, and Fastenal Company. According to TipRanks, Merkel has an average return of 6.4% and a 53.90% success rate on recommended stocks.