Hold Rating on Pool Due to High Interest Rates and Weak Market Data

William Blair analyst Ryan Merkel has maintained their neutral stance on POOL stock, giving a Hold rating on October 13.

Ryan Merkel has given his Hold rating due to a combination of factors impacting Pool’s stock performance. One of the primary concerns is the high interest rate environment, which is expected to constrain earnings per share growth in the near term. Although there is optimism for a return to normal activity levels in the pool industry by 2025, current market data remains weak.
Additionally, the affordability issue in the new pool market, exacerbated by high interest rates, is anticipated to continue affecting new pool construction and major renovations until at least the first half of 2026. While Pool’s maintenance segment is experiencing modest growth, it is insufficient to achieve the desired earnings growth. Given these macroeconomic challenges and their impact on consumer spending, Ryan Merkel views the risk and reward balance as even, justifying the Hold rating.

According to TipRanks, Merkel is a 4-star analyst with an average return of 8.2% and a 57.72% success rate. Merkel covers the Industrials sector, focusing on stocks such as SiteOne Landscape Supply, QXO Inc, and Fastenal Company.

In another report released on October 13, Wells Fargo also maintained a Hold rating on the stock with a $320.00 price target.