Acushnet rises on upgrade as we age and play more golf (NYSE:GOLF)

Acushnet Holdings Corp. (NYSE:GOLF) rose 3.7% on Monday after Jefferies upgraded the stock because we’re aging and, apparently, playing more golf.

Jefferies upgraded the stock saying it has “underappreciated the value of GOLF’s best-in-class portfolio in a healthy golf industry.”

“Looking ahead, GOLF is poised to defend its #1 share in golf balls and shoes, and gain share in #3 clubs, particularly metals, through broader appeal; while expanding margins on steady MSD% revs.,” analysts led by Randal Konik wrote in a note.

The firm upgraded shares to Buy with a price target of $84.

“As the U.S. population ages, we expect to see sustainable growth in rounds played, amplified by growth in new entrants, ensuring steady demand for golf OEMs ahead,” the analysts wrote.

Jefferies noted growth of 16% and 5% Y/Y in rounds played in 2022 and 2021, respectively, and year-to-date rounds up about 6%.

“The sport of golf has established a new baseline,” Jefferies wrote.

GOLF holds the leading market share in golf balls, gloves and footwear, however the firm said the Street underappreciates the company’s ability to increase penetration in the golf club market and take incremental pricing through superior innovation and customization optionality.

Rival Topgolf Callaway Brands Corp. (MODG) fell 0.6%.

Shares are up 32% year-to-date.