William L. Moore
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William L. Moore in Insider trading,

All The Sell-Side Sentiment Following Acushnet's Titleist IPO

Following the conclusion of Acushnet Holdings Corp GOLF's recent IPO’s quiet period, sell-side analyst coverage has poured in on the golf manufacturer.

Titleist parent company Acushnet has been seen as the gold standard in the golf industry for decades, possessing some of the most recognizable brands in the game. Titleist has also had a stranglehold on the golf ball market, which is one of the most profitable segments in golf. Titleist's golf ball segment makes up 36 percent of sales and more than 50 percent of its profit contribution.

D.A. Davidson

D.A. Davidson initiated coverage on Acushnet with a Buy rating and a $23 price target citing:

  • Consistent growth despite golf industry headwinds.
  • Positioning to sustain a profitable growth trajectory.
  • Robust free cash flow.
  • Media coverage of golfs demise has been greatly exaggerated.

Wells Fargo

Wells Fargo initiated coverage on Acushnet with a Market Perform rating a $20–22 valuation range. While global annual golf GDP is growing at a modest 1–2 percent rate, millennial participation in the sport is beginning to show initial signs of interest, a great sign for the sport.

“Golf’s brand reputation, innovation capabilities, and scale create a defensive moat and leverage for further share gains. Golf’s strategic growth initiatives and ongoing operational excellence should support industry-leading margin and strong cash generation,” said Wells Fargo.

Other Sell Side Coverage Initiations

  • Credit Suisse: Neutral rating, $20 target.
  • Deutsche Bank: Hold rating, $20 target.
  • Jefferies: Buy rating, $25 price target.
  • KeyBanc: Overweight rating, $23 target.
  • Morgan Stanley: Overweight rating.
  • Nomura: Buy rating, $22 target.
  • Raymond James: Outperform rating, $22 target.
  • Roth Capital: Buy rating.
  • UBS: Buy rating, $22 target.

At last check, Acushnet shares were up 3.88 percent at $19.81.

Latest Ratings for GOLF

DateFirmActionFromTo
Nov 2016JefferiesInitiates Coverage OnBuy
Nov 2016Deutsche BankInitiates Coverage OnHold
Nov 2016DA DavidsonInitiates Coverage OnBuy

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