Hayward upgraded to Buy from Hold at Stifel

Stifel upgraded Hayward (HAYW) to Buy from Hold with an unchanged price target of $16.50. The firm believes the stock’s current valuation, which suggests parity with residential focused equipment manufacturers, undervalues Hayward’s “resilient” near-term prospects and its “advantaged” long-term growth profile. Stifel’s margin outlook “offers room for error” around recent tariffs and transaction currency with modest gross margin expansion and continued spending growth against the step change in fiscal 2024, the analyst tells investors in a research note. The firm estimates “increasing optionality” for Hayward from an improving leverage profile, potentially enabling consistent return-of-cash beyond fiscal 2025 or acquisitions bolstering its growth prospects.