William Blair analyst Ryan Merkel has maintained their bullish stance on POOL stock, giving a Buy rating yesterday.
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Ryan Merkel has given his Buy rating due to a combination of factors that suggest potential for positive performance in Pool’s stock. The company’s recent quarter results were in line with expectations, and the guidance was better than anticipated, which has positively influenced investor sentiment. This improvement is reflected in the stock’s upward movement, despite the overall soft market conditions for pools.
Merkel highlights the solid gross margins and the return to growth in building materials as significant positives. Additionally, the company’s ability to exceed EPS estimates, driven by lower SG&A expenses and slightly better gross margins, supports the Buy rating. The guidance for EPS is also above previous estimates, indicating a cautious optimism about future performance. Merkel believes that potential rate cuts and a recovery in new pool builds could further catalyze the stock’s performance, reinforcing the Buy recommendation.
In another report released yesterday, TR | OpenAI – 4o also upgraded the stock to a Buy with a $348.00 price target.