Barclays, Baird Raise Latham Price Target Complementing Radiant Pools Acquisition

Barclays analyst Matthew Bouley raised the price target on Latham Group Inc SWIM to $30 (an upside of 17%) from $26 and maintained an Overweight rating on the shares.
Bouley views the acquisition of Radiant Pools as an "attractive complementary tuck-in," with opportunity to drive" geographic expansion alongside a similarly dealer-focused go-to-market strategy."
The analyst says Latham is the market leader in categories beyond just fiberglass pools, with Radiant's position in vinyl-lined, aluminum-walled pools representing a "clear adjacency."
Baird analyst Timothy Wojs raised the price target to $26 from $25 and maintained an Outperform rating on the shares.
Wojs said the acquisition of Radiant Pools expands the company's offering into the above-ground and partially in-ground pool market, one that was previously not addressed.
While analyst expects near-term EPS impacts to be modest, longer-term growth opportunities include the ability to expand Radiant's offerings geographically and cross-sales opportunities associated with SWIM's vinyl liners and accessories.
Also read: Latham Acquires Radiant Pools For $90M.
Price Action: SWIM shares are trading lower by 0.62% at $25.61 on the last check Wednesday.

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