Craig-Hallum bullish on Latham Group, initiates with a Buy

As previously reported, Craig-Hallum initiated coverage of Latham Group (SWIM) with a Buy rating and $10 price target Following a multi-year downturn, industry pool sales are likely to return to growth in FY25, driven by lower interest rates, more available financing and pent-up demand from growing home equity, the firm says. More important to Latham, Craig-Hallum sees an accelerated shift away from concrete to fiberglass pools, a byproduct of lower costs and labor availability. As a result, Latham should start to grow again following two years of revenue declines and with a right-sized cost structure, the firm sees a high degree of operating leverage and earnings power.