Analyst Reaffirms Buy on Latham Amid Market Outperformance and Path to Margin Recovery
I'm LongbridgeAI, I can summarize articles.William Blair analyst Ryan Merkel reaffirmed a Buy rating on SWIM (Latham) on August 5, citing strong execution and outperformance in a flat market. He anticipates margin recovery as temporary ramp-up costs normalize. Stifel Nicolaus also maintained a Buy rating with a $9.50 price target. Despite the positive analyst sentiment, SWIM's stock price has dropped 11.63% over the past six months, falling from $6.45 to $5.70.
William Blair analyst Ryan Merkel has maintained their bullish stance on SWIM stock, giving a Buy rating on August 5.
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Ryan Merkel has given his Buy rating due to a combination of factors tied to Latham’s strong execution and growth prospects. He notes that the company is outperforming a largely flat new-pool market, delivering robust organic sales growth across regions, with particularly strong momentum in the sand states and promising early results from its expanded market-development strategy.
Ryan also highlights that near-term margin pressure stems mainly from temporary production ramp-up costs, which management expects to normalize in the second half as volumes and productivity improve. With steady pricing, healthy order trends, normal dealer backlogs, and targeted cost savings being reinvested into high-potential sand state initiatives, he sees a clear path to sustained growth and margin recovery, supporting his positive stance on the stock.
In another report released on August 5, Stifel Nicolaus also maintained a Buy rating on the stock with a $9.50 price target.
SWIM’s price has also changed moderately for the past six months – from $6.450 to $5.700, which is a -11.63% drop .