Michael Albanese, an analyst from Benchmark Co., maintained the Buy rating on Malibu Boats (MBUU – Research Report). The associated price target remains the same with $44.00.
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Michael Albanese has given his Buy rating due to a combination of factors that suggest potential upside for Malibu Boats. Despite a challenging year with a 30% decline in stock value, the company maintains a strong net cash position and a highly variable cost structure, which should help sustain margins better than its peers during market downturns. Additionally, Malibu Boats has reduced its capital expenditures, providing financial flexibility for future opportunities, including share buybacks and potential mergers and acquisitions in a fragmented market.
Furthermore, the company has navigated past significant challenges, such as a bankruptcy at a major dealer and a change in leadership, which positions it for recovery. With a forward AEBITDA multiple of 5x and a forward P/E ratio of approximately 10x, the valuation appears attractive. The free cash flow yield of around 10% also indicates a solid financial footing, supporting the Buy recommendation.
In another report released on April 10, Texas Capital Securities also initiated coverage with a Buy rating on the stock with a $37.00 price target.