William Blair analyst Ryan Merkel has maintained their bullish stance on SWIM stock, giving a Buy rating yesterday.
Ryan Merkel’s rating is based on several strategic initiatives and positive financial projections for Latham Group. The company is expecting a 5% organic sales growth in 2025, despite a stagnant new pool market, driven by factors such as fiberglass conversion, increased market share in sand states, and synergies from Coverstar revenue. Investments in dealer conversion and new pool designs in key regions like Florida and Texas are showing promising results, contributing to the company’s optimistic outlook.
Furthermore, Latham Group’s proactive measures, such as producing and shipping pools from Canada and securing raw materials in advance, position the company well against potential tariff impacts. The EBITDA margin outlook is also favorable, with anticipated cost savings from lean initiatives and volume growth. While the first quarter may see flat sales, improvements are expected throughout the year, supported by elevated investments in sand states. Overall, these factors suggest that Latham Group is well-positioned for growth and margin expansion, justifying the Buy rating.