Malibu Boats: Early Signs Of Stabilization

Caffital Research
1.62K Followers
(9min)

Summary

  • Malibu Boats' Q1 financials were weak along with peers as the industry's struggles have persisted.
  • While the retail-level sales outlook remains uncertain, dealers' improving inventory levels are starting to suggest stabilization that Malibu Boats' FY2025 guidance also suggests.
  • The lawsuit with Tommys Boats has now been settled for $3.5 million.
  • I estimate the MBUU stock to have an upside of 43% to a fair value of $59.07.

Classic Motor Boat

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Malibu Boats, Inc. (NASDAQ:MBUU) reported the company’s fiscal Q1 results on the 31st of October, showing another quarter of weak financials amid industry turbulence. On the other hand, the quarter already shows signs of sequential stabilization, and although the

This article was written by

1.62K Followers
I am an avid investor with a major focus on small cap companies with experience in investing in US, Canadian, and European markets. My investment philosophy to generating great returns on the stock market revolves around identifying mispriced securities by understanding the drivers behind a company's financials, and ultimately, most often revealed by a DCF model valuation. This methodology doesn't limit an investor into rigid traditional value, dividend, or growth investing, but rather accounts for all of a stock's prospects to determine the risk-to-reward.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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