GOLF - Acushnet Holdings stock swings higher as Tigress moves to Buy

2023-03-14 09:21:19 ET

Acushnet Holdings ( NYSE: GOLF ) stock rose on Tuesday after Tigress Financial moved its rating from Neutral to Buy.

The company’s strong products and the “upcoming cadence of new product introductions” is expected to drive upside for the share price. Additionally, the secular growth of the golf industry as younger players join the game is expected to bolster the stock as a market leader.

“Titleist golf balls continue to be the overwhelming ball of choice of PGA and LPGA Tour players, with Pro V1 golf balls winning all four men’s Major Championships in 2022,” CIO Ivan Feinseth wrote on Tuesday. “GOLF’s strong 2022 results were also driven by double-digit sales growth in Titleist golf club, Titleist gear, and FootJoy golf wear segments driven by a wide range of innovative new products, including new TSR models that quickly became the most-played model on the PGA tour.”

The demand for these new products has also helped the company raise prices and maintain margins. Further, custom club production capacity has been boosted, which Feinseth sees as a competitive advantage.

He upgraded the stock from Neutral to Buy and raised his price target to $62 from a prior $50. Shares of the Massachusetts-based golf product manufacturer rose 2% just before the market open on Tuesday.

Read more on the company’s latest earnings results .

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