Latham Group Plunges 10.27% on Bank of America Downgrade

On April 24, 2025, Latham Group experienced a significant drop of 10.27% in pre-market trading, reflecting a notable decline in investor sentiment.

Bank of America has revised its outlook on Latham Group, reducing the stock's price target from $5.40 to $4.75 while maintaining an Underperform rating. This adjustment is part of a broader reassessment of forecasts for companies within the building products sector, driven by a decline in renovation and remodeling activities, reduced momentum in new construction projects, and potential tariff impacts.

Analysts have also expressed concerns over market conditions and the challenges these companies face as economic dynamics shift, impacting their growth prospects. The firm has revised its estimates for 2025 and 2026 downward by approximately 4% and 6%, respectively.

Despite the downward revisions, some analysts remain optimistic about Latham Group's future. Based on the one-year price targets offered by 7 analysts, the average target price for Latham Group is $7.11, with a high estimate of $10.00 and a low estimate of $4.00. This average target implies an upside of 52.68% from the current price.

However, GuruFocus estimates suggest a different outlook, with the estimated GF Value for Latham Group in one year being $3.29, indicating a downside of 29.32% from the current price. This discrepancy highlights the varying opinions among analysts regarding the company's future performance.