2023-04-21 07:22:17 ET
Pool Corporation ( NASDAQ: POOL ) shares rebounded in premarket action on Friday as Stephens Research shifted to Buy from Neutral.
Shares of the Louisiana-based pool supply company edged lower on Thursday after an inauspicious Q1 earnings report and trimmed guidance . However, Stephens sees significant upside in the long term as the company could continue to gain market share despite a market downturn.
“The stock could tread water in the ultra-near-term as seasonally it is still too early to fully gauge activity levels, which could keep investors waiting,” the firm’s analysis stated. “However, we think 20x next year's earnings for a best-in-class, high quality compounder that consistently puts up 25%-30% ROIC, consistent market out-performance and strong FCF is an attractive entry point.”
As such, the stock was upgraded to Overweight from Equal Weight. Stephens’ price target on the name was moved to $420 from $415 alongside the upgrade. Shares of Pool Corporation ( POOL ) pushed 1.1% higher before the bell on Friday.
Read the earnings call transcript .
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Pool Corporation upgraded as Stephens eyes long-term upside