Malibu Boats downgraded to Market Perform from Outperform at Raymond James

Raymond James downgraded Malibu Boats to Market Perform from Outperform without a price target. The downthtades is in response to the loss of Tommy’s Boats, one of Malibu Boats’ largest dealers, which last week filed a civil complaint alleging breach of contract among other transgressions, for which it is seeking compensatory and punitive damages, the analyst tells investors in a research note. The firm says that while the potential outcome of this lawsuit is difficult to predict and will likely remain an overhang on the stock, the more significant issue is the impact of Tommy’s inventory being absorbed into the dealer channel on Malibu’s sales and margins, the implications of which could extend into fiscal 2025.