KeyBanc Maintains Buy Rating on Acushnet Holdings

KeyBanc analyst Noah Zatzkin maintains a Buy rating for Acushnet Holdings with a price target consensus of $74.50. The company's market cap is $4.68B and P/E ratio is 22.13. Insider sentiment is negative, with an increase in insiders selling shares, including President – FootJoy Christopher Aaron Lindner selling 12,500 shares for $891,927 in May 2025.

Acushnet Holdings Corp. (GOLF) reported its Q2 2025 earnings, revealing a mixed bag of results. The company posted earnings per share (EPS) of $1.25, falling short of the anticipated $1.32, marking a 5.3% negative surprise. However, revenue came in at $720.5 million, slightly surpassing the forecast of $717.39 million. Following these announcements, Acushnet’s stock experienced a pre-market increase of 1.44%, closing the previous day at $79.7, but still down 3.19% from its last close [1].

Despite the EPS miss, the company has shown strength in its premium golf equipment market, with notable sales increases in its Titleist brand across all regions. The company continues to benefit from a growing interest in golf, as evidenced by a 2% rise in worldwide golf rounds during the first half of the year. KeyBanc analyst Noah Zatzkin maintains a Buy rating for Acushnet Holdings with a price target consensus of $74.50. The company's market cap is $4.68B and P/E ratio is 22.13 [2].

Revenue exceeded expectations with a modest increase, while EPS fell short of forecasts, impacting investor sentiment. The stock price showed resilience with a pre-market uptick. Strong performance in the golf equipment segment was evident, with new product launches and strategic initiatives underway. The company’s financial stability is evidenced by its current ratio of 2.21 and moderate debt levels, as reported by InvestingPro.

Looking ahead, Acushnet expects net sales to grow by low single digits in 2025, despite facing a $30 million tariff impact in the second half. The company plans to mitigate over 50% of this impact and anticipates continued sales growth across all segments. Capital expenditures have been revised down to $70 million, reflecting a strategic focus on cost management.

CEO David Marr emphasized the vibrancy of the golf business, stating, "The sport and business of golf continue to be vibrant and healthy." He also highlighted the company’s cautious approach to pricing amidst tariff concerns, noting, "We are careful about pricing and realize there’s got to be a performance story attached to any pricing action." CFO Sean Sullivan added, "We continue to operate with caution given tariffs and their potential impact on consumer spending."

Risks and challenges include potential tariff impacts, economic uncertainties, supply chain flexibility, market corrections, and restructuring charges. Insider sentiment is negative, with an increase in insiders selling shares, including President – FootJoy Christopher Aaron Lindner selling 12,500 shares for $891,927 in May 2025.

References:
[1] https://www.investing.com/news/transcripts/earnings-call-transcript-acushnet-holdings-q2-2025-sees-mixed-results-93CH-4177768
[2] https://www.keybanc.com/analyst-reports/acushnet-holdings