Acushnet is downgraded at Jefferies on lowered growth expectations

Acushnet Holdings (NYSE:GOLF) Corp. (GOLF) is on watch after Jefferies lowered the golf equipment stock to a Hold rating after having it set at Buy. The firm thinks Acushnet (GOLF) will return to a more normalized phase of growth after a strong run. Over the last five years, GOLF shares have delivered an annualized return of 20% to easily outperform peers and the S&P 500 Index.

"While we continue to recognize GOLF as a high-quality golf asset with strong leadership and consistent financial performance, the challenge is maintaining momentum against record-breaking participation while the latest alt data is suggesting a deceleration in growth YTD," warned analyst Randal Konik.

The recent share price outperformance was highlighted to be due to GOLF's strong brand presence, innovative product offerings, and strategic positioning in a largely consolidated industry. However, national rounds played declined by 1.4% in July, following a modest increase of 1.2% in June and a slight drop of 0.8% in May. Konik said the recent figures underscore the challenges of maintaining momentum.

Jefferies assigned a price target of $75 on GOLF based on a 13X multiple to the FY25 EBITDA estimate.

Shares of Acushnet (GOLF) are up 16% over the last 52 weeks and still trade slightly above their 100-day and 200-day moving averages.