Acushnet Holdings Corp (NYSE: GOLF)
reported its Q4 results ahead
of expectations. “Lack of catalysts keep us on the sidelines,” Imperial Capital’s George Kelly said in a report. He maintained an
In-Line rating on the company, while reducing the price target from $20 to $19.
Acushnet reported revenue of $330 million and EBITDA of $38 million. Management guided to 2017 revenue and EBITDA of $1,565
million–$1,595 million and $220 million–$230 million, respectively.
On The Sidelines For Now
Kelly mentioned the following reasons for remaining on the sidelines:
-
Challenging to grow market share in the near term: The ball business already contributes 55 percent of the
company’s business. The driver and iron segments could witness
pressure in 2017 from Callaway Golf Co (NYSE: ELY) and PXG.
- 2016 growth benefitted from premium apparel: The company had launched a premium apparel business in Japan
and Korea in 2016. This boosted revenue growth. Management does not seem ready to further expand the initiative, Kelly said.
- Higher input costs may exert pressure on margins: “We believe ball margin could be pressured as input costs
increase from historically low commodity prices in 2015 and 2016,” the analyst wrote.
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Latest Ratings for GOLF
| Date |
Firm |
Action |
From |
To |
| Mar 2017 |
Imperial Capital |
Maintains |
|
In-Line |
| Jan 2017 |
Imperial Capital |
Initiates Coverage On |
|
In-Line |
| Nov 2016 |
Nomura |
Initiates Coverage On |
|
Buy |
View More Analyst Ratings for
GOLF
View the Latest Analyst Ratings
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