Acushnet Holdings upgraded to Buy at Compass Point ahead of Q3 report

As previously reported, Compass Point upgraded Acushnet Holdings to Buy from Neutral with a price target of $60, up from $59. The firm reduced its EV/EBITDA multiple to 12 times its 2023 EBITDA estimate in reflection of the challenges potentially raised by the USGA Model Local Rule impacting golf balls, but applying that multiple to its 2023 EBITDA estimate of $382M leads it to arrive at a price target of $60 and raise its rating to Buy based upon that price target. Despite bears’ assertions that recessionary forces and back-to-work must eventually lead to a decline, the demand for golf equipment, balls, and gear continues to be strong, the analyst tells investors ahead of the company’s Q3 report.