Robert W. Baird Forecasts Strong Price Appreciation for Pool (NASDAQ:POOL) Stock

Key Points

• Robert W. Baird has raised its price target for Pool Corp from $310 to $340, suggesting a potential upside of 4.19% from the company's previous close.
• Pool Corporation reported $5.17 earnings per share, exceeding estimates of $5.12, with a revenue of $1.78 billion for the quarter.
• The company has initiated a $600 million share buyback plan, indicating management believes its shares are undervalued.

Pool (NASDAQ:POOL - Get Free Report) had its price target hoisted by equities researchers at Robert W. Baird from $310.00 to $340.00 in a research report issued on Friday,Benzinga reports. The brokerage currently has a "neutral" rating on the specialty retailer's stock. Robert W. Baird's price objective indicates a potential upside of 4.19% from the company's previous close.

Other equities analysts also recently issued research reports about the company. Stephens dropped their price target on Pool from $400.00 to $350.00 and set an "overweight" rating for the company in a research report on Monday, April 28th. Stifel Nicolaus set a $300.00 price target on Pool in a research report on Friday, April 25th. Deutsche Bank Aktiengesellschaft started coverage on Pool in a research report on Tuesday, April 1st. They set a "hold" rating and a $344.00 price target for the company. Oppenheimer dropped their price target on Pool from $370.00 to $322.00 and set an "outperform" rating for the company in a research report on Monday, April 28th. Finally, Wells Fargo & Company raised their price target on Pool from $300.00 to $320.00 and gave the stock an "equal weight" rating in a research report on Tuesday, July 8th. One equities research analyst has rated the stock with a sell rating, five have given a hold rating and three have issued a buy rating to the company. Based on data from MarketBeat.com, Pool has a consensus rating of "Hold" and a consensus price target of $348.25.

Pool Stock Up 3.0%

POOL opened at $326.34 on Friday. The company has a debt-to-equity ratio of 0.78, a current ratio of 1.79 and a quick ratio of 0.53. The business has a 50 day simple moving average of $301.20 and a 200-day simple moving average of $317.89. The stock has a market capitalization of $12.27 billion, a P/E ratio of 30.61, a P/E/G ratio of 4.43 and a beta of 1.10. Pool has a 12 month low of $282.22 and a 12 month high of $395.60.

Pool (NASDAQ:POOL - Get Free Report) last issued its quarterly earnings data on Thursday, July 24th. The specialty retailer reported $5.17 earnings per share (EPS) for the quarter, topping the consensus estimate of $5.12 by $0.05. The firm had revenue of $1.78 billion during the quarter, compared to analysts' expectations of $1.79 billion. Pool had a return on equity of 30.11% and a net margin of 7.77%. Pool's revenue was up .9% on a year-over-year basis. During the same period in the previous year, the firm posted $4.99 earnings per share. On average, equities analysts anticipate that Pool will post 11.32 earnings per share for the current fiscal year.

Pool announced that its board has initiated a share buyback plan on Wednesday, April 30th that permits the company to buyback $600.00 million in shares. This buyback authorization permits the specialty retailer to reacquire up to 5.4% of its shares through open market purchases. Shares buyback plans are usually an indication that the company's management believes its shares are undervalued.

Institutional Investors Weigh In On Pool

Institutional investors have recently added to or reduced their stakes in the company. Whipplewood Advisors LLC grew its position in Pool by 471.4% during the first quarter. Whipplewood Advisors LLC now owns 80 shares of the specialty retailer's stock valued at $25,000 after acquiring an additional 66 shares during the period. City Holding Co. purchased a new stake in Pool during the first quarter valued at about $26,000. Sentry Investment Management LLC purchased a new stake in Pool during the first quarter valued at about $30,000. Versant Capital Management Inc grew its position in Pool by 790.9% during the first quarter. Versant Capital Management Inc now owns 98 shares of the specialty retailer's stock valued at $31,000 after acquiring an additional 87 shares during the period. Finally, FWL Investment Management LLC purchased a new stake in Pool during the fourth quarter valued at about $39,000. Hedge funds and other institutional investors own 98.99% of the company's stock.

About Pool

Pool Corporation distributes swimming pool supplies, equipment, and related leisure products in the United States and internationally. The company offers maintenance products, including chemicals, supplies, and pool accessories; repair and replacement parts for pool equipment, such as cleaners, filters, heaters, pumps, and lights; and building materials, such as concrete, plumbing and electrical components, functional and decorative pool surfaces, decking materials, tiles, hardscapes, and natural stones for pool installations and remodeling.

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