Update shared on 07 Nov 2025
Fair value Increased 3.35%Analysts have raised their price target for Latham Group from $8.00 to $8.75, citing improved confidence in the company's margin profile and ability to gain market share, even with a slow new construction environment.
Analyst Commentary
Recent commentary from bullish analysts highlights both positive developments and key areas of caution regarding Latham Group's outlook.
Bullish Takeaways- Bullish analysts point to increased confidence in Latham Group's ability to capture market share across all business segments, even as new pool construction remains slow.
- The outlook for the company's margin profile has strengthened, supporting a higher valuation and the potential for shareholder returns.
- Successful execution in addressing challenges from a subdued construction environment is seen as a sign of management's agility.
- Growth opportunities outside new builds, such as aftermarket or replacement activity, are being recognized as valuable contributors to future revenue streams.
- Bearish analysts remain cautious about the overall impact of prolonged softness in the new construction market, which could limit top-line growth if conditions persist.
- Margin improvements are partly reliant on cost structure efficiencies, which may be tested if input costs fluctuate or competitive pressures intensify.
- There are lingering concerns regarding the pace and sustainability of market share gains, particularly if demand does not fully recover in the near term.
What's in the News
- Latham Group, Inc. narrowed its earnings guidance for the fiscal year 2025, now expecting Net Sales to range from $540 million to $550 million. This compares to previous guidance of $535 million to $565 million (Key Developments).
Valuation Changes
- Fair Value has risen slightly, moving from $7.67 to $7.93 per share.
- Discount Rate has decreased modestly from 7.91 percent to 7.78 percent, indicating a lower rate of required return or perceived risk.
- Revenue Growth expectations have declined, falling from 6.1 percent to 5.4 percent.
- Net Profit Margin has increased significantly, improving from 5.1 percent to 6.8 percent.
- Future P/E (Price-to-Earnings) ratio has fallen notably from 35.9x to 27.8x. This suggests a reduced valuation multiple for projected earnings.
Disclaimer
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