William Blair analyst Ryan Merkel has maintained their bullish stance on HAYW stock, giving a Buy rating today.
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Ryan Merkel has given his Buy rating due to a combination of factors including Hayward Holdings’ strong financial performance and strategic initiatives. The company has demonstrated impressive gross margins and a 5% EBITDA beat, driven by effective productivity measures and pricing strategies. Despite a challenging macroeconomic environment and flat pool industry activity, Hayward has managed to maintain resilient volumes and strong gross margins.
Additionally, Hayward’s strategic investments in new products and cost management have positioned it for above-average EPS growth in a recovery scenario. The company’s debt management has been commendable, with net leverage reduced significantly, which opens up opportunities for potential M&A activities. The successful acquisition of ChlorKing and the introduction of innovative products like OmniX further strengthen Hayward’s market position, suggesting a promising outlook for future performance.
According to TipRanks, Merkel is a 4-star analyst with an average return of 9.4% and a 65.87% success rate. Merkel covers the Industrials sector, focusing on stocks such as Fastenal Company, SiteOne Landscape Supply, and Aaon.
In another report released today, TR | OpenAI – 4o also upgraded the stock to a Buy with a $16.50 price target.