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Morgan Stanley launched protection on Acushnet Holdings (GOLF +1.8%) with an Equal-weight ranking.
Analyst Brian Harbour pointed to best-in-class administration for the Titleist golf ball maker with category-dominant manufacturers which cater to devoted, excessive finish prospects. The corporate’s distinctive management over the availability chain can also be seen as an asset.
GOLF can also be famous to have demonstrated a capability to develop new merchandise frequently to drive gross sales in all segments and the numerous historical past of return of capital is predicted to proceed.
Regardless of all these constructive vibes the cautious ranking on GOLF from Morgan Stanley is predicated off the present buying and selling multiples.
“Buying and selling round pre-Covid multiples, we see the shares as nearer to pretty valued as GOLF returns to a extra normalized tempo of gross sales/earnings progress in ’22/’23, with extra balanced dangers (ongoing demand tailwinds vs macro uncertainty, margin pressures).”
Morgan Stanley’s value goal of $48 on GOLF nonetheless implies greater than 16% upside. The PT is predicated on 16.5X the agency’s 2023 EPS estimate, implying round a ten.5X EBITDA a number of, which is known as a modest premium to the pre-Covid ranges and embedding ongoing however extra modest earnings progress over the subsequent two years.
The Searching for Alpha Quant Score on Acushnet Holdings Corp. (NYSE:GOLF) is at Maintain due mainly to a low mark for progress.
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