😎 Summer Sale Exclusive - Up to 50% off AI-powered stock picks by InvestingProCLAIM SALE

Pool Corp shares target lifted on bullish growth prospects

EditorEmilio Ghigini
Published 04/01/2024, 08:05 AM

On Monday, Oppenheimer has increased the price target for Pool Corp (NASDAQ: NASDAQ:POOL) shares to $436 from the previous $407, while keeping an Outperform rating. The firm's decision follows recent investor meetings with Pool Corp's CFO, Melanie Hart, which took place after the company's successful Investor Day on March 19, 2024.

The meetings highlighted the company's strong positioning to leverage the growing number of in-ground pools in the United States, as well as the need to renovate the aging pool infrastructure.

Pool Corp's recurring maintenance services are also expected to drive demand. The analyst noted the company's strategic technology investments, particularly its enhanced Pool360 mobile ordering platform, which is anticipated to contribute to revenue growth.

According to Oppenheimer, after a period of exceptional growth from 2020 to 2022, Pool Corp experienced a trough in 2023. However, the company is forecasted to return to adjusted earnings per share (EPS) growth in 2024. The firm's maintained earnings estimates for 2024 and 2025 underpin the revised price target.

The upgrade in the price target reflects the firm's confidence in Pool Corp's strategy and market position, as well as its potential for continued financial performance improvement in the coming years.

InvestingPro Insights

Following the optimistic outlook from Oppenheimer, Pool Corp's (NASDAQ: POOL) recent financial metrics and analyst revisions provide a broader context for investors. The company's market capitalization stands at $15.53 billion, and it operates with a moderate level of debt, which could be appealing for investors looking for a stable investment. Notably, Pool Corp has a track record of raising its dividend for 13 consecutive years, indicating a commitment to returning value to shareholders. The company also boasts a long history of maintaining dividend payments, with 21 consecutive years under its belt.

An important consideration for investors is the company's valuation multiples. Currently, Pool Corp is trading at a high Price/Earnings (P/E) ratio of 30.14 and a Price/Book (P/B) ratio of 11.83 as of the last twelve months ending Q4 2023. While these metrics suggest a premium valuation, they may be justified by the company's profitability; analysts predict Pool Corp will be profitable this year, and it has been profitable over the last twelve months. Additionally, the company has experienced a strong return over the last decade and has maintained a high return over the last five years.

For those interested in diving deeper, there are over 10 additional "InvestingPro Tips" available on Investing.com for Pool Corp, including insights into earnings revisions and liquidity. Investors looking to take advantage of these insights can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.