GOLF - Acushnet's Course Is On Par

2024-02-06 15:41:39 ET

Summary

• Acushnet manufactures and sells golf products, including golf balls, clubs, and golf-related wear.
• The company's financials have improved significantly due to increased demand during and after the Covid pandemic, further boosting Acushnet's history of good margin expansion.
• Due to timing shifts and a poor consumer spending, Acushnet's Q4 guidance is poor, estimating a year-over-year fall in revenues and earnings.
• I believe that the guidance is still temporary weakness, and that Acushnet's elevated earnings profile should be sustainable.
• The current valuation doesn't leave space for further share appreciation, in my opinion, though - the current risk-to-reward constitutes a hold rating.

Acushnet Holdings Corp. ( GOLF ) manufactures and sells golf products, including golf balls, golf clubs, as well as other golf accessories & wear. The company owns the Titleist, FootJoy, Vokey Design, Scotty Cameron, Pinnacle, and KJUS brands, selling both in the United States and internationally. The Titleist golf balls are highly competitive in the industry, being utilized very highly in the US Open Championship among other professional tournaments....

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