Roth Capital Partners downgraded Acushnet Holdings Corp. ( NYSE: GOLF ) on Tuesday to a Neutral rating from a prior perch of Buy.
Analyst George Kelly and team believe GOLF has elevated risk given the weakening consumer environment in the U.S. and globally. FY23 estimates on GOLF were moved slightly lower amid heightened FX risk and they warn on more downside if equipment trends were to worsen.
"Looking ahead, Roth warns on elevated risk that GOLF does not match consensus marks. Key risk areas for the company include FX with half of GOLF's revenue coming from international markets and a consumer spending slowdown, particularly in Europe.
"We now model for golf club revenue to decline 5%, while other operating segments remain flattish. We also model for gross margin to expand 100bps year-over-year due to normalization in freight costs, from both price and mix (back to ocean freight)."
Roth Capital Partners set a new 12-month price target on Acushnet ( GOLF ) of $45.
Shares of GOLF were up 1.55% premarket on Tuesday to $46.47.
Achushnet ( GOLF ) is expected to report earnings during the first week of November.
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Acushnet loses bull rating at Roth Capital with golf spending seen at risk