Analysts Trim OneWater Marine Price Targets After Latest Report

In the wake of OneWater Marine Inc.'s (NASDAQ:ONEW) latest earnings report, analysts have been trimming their price targets for the company's stock. The report, released on February 2, 2025, revealed a mixed bag of results that left investors and analysts alike with a lot to digest. While the company's revenue and earnings per share (EPS) missed analysts' expectations, its gross profit margin and adjusted EBITDA remained relatively stable. This article will delve into the key aspects of OneWater Marine's latest report and the subsequent revisions to analysts' price targets.

OneWater Marine, a leading premium marine retailer in the United States, operates a network of retail locations and distribution centers, offering a wide array of marine products and services. In its fiscal fourth quarter and full-year 2024 earnings report, the company faced significant challenges, including a revenue decline of 8% for the year, attributed to macroeconomic uncertainties and severe weather impacts such as Hurricane Helene. Despite these obstacles, OneWater Marine reported a gross profit margin of 24.5% and adjusted EBITDA of $82 million for the fiscal year. The company experienced a 16.2% decline in fourth-quarter revenue compared to the previous year, with new and pre-owned boat sales decreasing by 18% and 20.1%, respectively. However, OneWater Marine managed to reduce its net loss significantly compared to the prior year, which was influenced by a substantial non-cash impairment charge. The company's strategic cost-reduction efforts were reflected in a 6.1% decrease in selling, general, and administrative expenses.

For the full fiscal year, OneWater Marine's total revenue dropped to $1.78 billion, impacted by a decrease in both new and pre-owned boat sales and a 9.7% decrease in service, parts, and other sales. The company maintained a healthy inventory position and ended the year with a reduced inventory level, aligning with market demand. OneWater Marine's adjusted diluted earnings per share were reported at $0.98, a decline from the previous year, and adjusted EBITDA showed a decrease of 53.2%. Looking ahead to fiscal 2025, OneWater Marine Inc. anticipates a cautious start due to the ongoing effects of recent hurricanes but remains optimistic about its full-year outlook. The company expects its strategic cost actions to provide benefits and forecasts revenue between $1.7 billion and $1.85 billion, with adjusted EBITDA projected to range from $80 million to $110 million.

The revisions to analysts' price targets for OneWater Marine's stock reflect their concerns about the company's recent performance and the challenges it faces in the coming year. The average price target for ONEW stock has been revised downward to $23.75, with a low estimate of $22 and a high estimate of $25. This average target predicts an increase of 31.43% from the current stock price of $18.07. The highest price target of $25 represents a potential increase of 38.35% from the current price. Despite the downward revisions, analysts maintain a generally positive outlook on OneWater Marine's long-term prospects, with the average analyst rating for ONEW stock remaining at "Buy."

In conclusion, OneWater Marine's latest earnings report has led analysts to trim their price targets for the company's stock, reflecting their concerns about the company's recent performance and the challenges it faces in the coming year. However, the company's strategic cost-reduction efforts and optimistic outlook for fiscal 2025 suggest that there may still be opportunities for investors to capitalize on the stock's long-term potential. As always, investors should carefully consider the company's financial performance, analyst ratings, and price targets before making any investment decisions.