GOLF: Share Repurchases And Margin Expansion Will Support Balanced Future Returns

Analysts have nudged their price target on Acushnet Holdings higher by approximately $1.00 to reflect slightly stronger expectations for revenue growth, improving profit margins, and a still supportive but modestly lower future earnings multiple.

What's in the News

• Reiterated second half 2025 revenue guidance, calling for low single digit growth versus the prior year, signaling steady but moderated expansion. (company guidance)
• Projected fourth quarter 2025 revenue of approximately $448 million, implying high single digit growth over the same period in 2023, aligned with its product launch cadence. (company guidance)
• Maintained full year 2025 revenue outlook in the range of $2.52 billion to $2.54 billion on a reported basis, reinforcing confidence in the demand backdrop. (company guidance)
• Repurchased 953,406 shares between July 1 and September 30, 2025 for $62.51 million, equal to 1.63% of shares, underscoring ongoing capital returns. (company disclosure)
• Completed an aggregate 18,878,890 share repurchase since June 2018, representing 28.34% of shares and $985.25 million in buybacks under the long running authorization. (company disclosure)

Valuation Changes

• The fair value estimate has risen slightly to approximately $79.86 from $78.86, reflecting modestly stronger fundamentals.
• The discount rate has increased marginally to about 7.52% from 7.50%, implying a slightly higher required return on equity.
• The revenue growth assumption has edged higher to roughly 2.75% from 2.65%, incorporating a somewhat improved top-line outlook.
• The net profit margin has risen moderately to about 8.78% from 8.09%, driven by expectations for better operating leverage and mix.
• The future P/E multiple has declined modestly to roughly 22.7x from 24.4x, indicating a more conservative view on valuation despite better fundamentals.