Pool Corporation (NASDAQ:POOL) jumped on Wednesday after Deutsche Bank moved its rating to Buy from Hold on the expectation the company will deliver a strong guidance update.
Analyst Joe Ahlersmeyer and team thinks investors are starting to latch on to some differentiators with POOL – including sticky non-commodity pricing, favorable spending trends on pool products, and strong growth of base customers.
“While we may be a bit early and while the stock may be choppy around the 4Q22 print, we expect the shares to ultimately follow the fundamentals this year, and increased cash flow and buybacks should provide meaningful additional support for the shares to outperform.”
Deutsche Bank lifted its price target to $417 from $350.
Shares of POOL ran up a 5.15% gain on Wednesday to $341.76 vs. the 52-week trading range of $278.10 to $520.60.