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Powerboat Sales Bulletin as Economic Pressures Rise – Baird (NASDAQ:MBUU)

By on June 27, 2022 0

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In an industry update, Baird pointed to significant downturns in powerboat sales that will likely impact names across the space.

Company data said retail powerboat sales fell 18% for the month of May, year-to-date sales down 19%. By category, Ski/Wake data fell 17%, foil fish sales fell even more than 25%, and pontoon sales fell 16%. In addition, personal watercraft sales fell 17% from the previous year.

“We believe the lack of inventory remains a headwind, but amid rising interest rates and fuel prices and declining consumer sentiment, the economic concerns are real,” the analyst wrote. of Baird Craig Kennison to customers. “We see good value in the maritime space, but note that valuation is a poor trade signal – and early-cycle investments tend to struggle until economic fears peak.”

MasterCraft Boat Holdings (NASDAQ: MCFT) and Malibu Boats (NASDAQ: MBUU) were cited as the main titles affected by the slowdown in sales, particularly in the ski and wake category. The industry as a whole has been rated as “high risk” in the current environment.

Other stocks cited in the research update included Brunswick Corporation (BC), BRP Inc. (DOOO), OneWater Marine (ONEW) and Polaris (PII).

Learn more about B. Riley’s reassessment of outdoor and recreation spending.