On Friday, KeyBanc made an adjustment to the price target for OneWater Marine Inc. (NASDAQ:ONEW), decreasing it to $30.00 from the previous $34.00. Despite this change, the firm maintained its Overweight rating on the stock. The revision follows OneWater Marine's fiscal second-quarter 2024 performance, which slightly missed consensus expectations. However, the company has upheld its full-year 2024 outlook, albeit hinting at results potentially leaning towards the lower end of its projected ranges.
OneWater Marine has shown a degree of resilience in the face of challenging conditions within the marine industry, performing relatively well compared to other companies that have reported weaker results. KeyBanc's continued support for an Overweight rating on OneWater Marine is based on the company's distinct market position. Management's emphasis on effective inventory management and cost reduction strategies is seen as a key strength for the company.
The firm also recognizes OneWater Marine's long-term growth algorithm, which includes potential for attractive mergers and acquisitions, as well as sales, parts, and operations strategies. The belief that near-term volatility in the marine cycle may present beneficial capital deployment opportunities is also a factor in maintaining the positive rating. These opportunities are beginning to become apparent, according to the analyst.
The revised price target of $30 reflects updated estimates and takes into account the current market environment and OneWater Marine's recent earnings report. Despite the lowered target, KeyBanc's outlook on the stock remains optimistic, banking on the company's strategic advantages and potential for growth in the marine sector.
InvestingPro Insights
OneWater Marine Inc. (NASDAQ:ONEW) has shown a mix of challenges and resilience, as reflected in the recent financial metrics from InvestingPro. With a market capitalization of $371.68 million, the company's financial health and growth potential are of keen interest to investors. The adjusted P/E ratio for the last twelve months as of Q2 2024 stands at 7.05, offering a potentially attractive valuation for investors considering the historical context of the industry. Additionally, the company exhibits a PEG ratio of just 0.04 during the same period, suggesting that the stock may be undervalued relative to its earnings growth.
Despite a quarterly revenue decline of -6.87% in Q2 2024, OneWater Marine's gross profit margin remains solid at 28.53%. This indicates the company's ability to maintain profitability even amidst revenue fluctuations. On the performance front, the stock has experienced a 4.64% price total return over the past week, showing some signs of recovery after a year-to-date price total return of -31.96%. Investors should also note the fair value discrepancy, with analyst targets suggesting a fair value of $32, while InvestingPro's assessment stands at $19.39.
InvestingPro Tips highlight the importance of considering both recent performance and long-term growth prospects when evaluating a stock like OneWater Marine. With additional tips available on InvestingPro, interested readers can further explore the company's financial health and market position. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription for more in-depth analysis and tips. There are 7 more InvestingPro Tips available that could provide further insights into OneWater Marine's investment potential.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.