MarineMax jumps after Citi turns bullish on "soft-landing" scenario

OneWater Marine

09/09/2024 14:25

** MarineMax's  HZO.N  shares jump 6.4% premarket to $30.89
after Citi upgrades to "buy" from "neutral", saying recreational
boat retailer to benefit from lower interest rates
    ** Brokerage hikes PT by $4 to $44, implying ~52% upside to
stock's last close
    ** HZO a strong play on the Fed pivot, as boat affordability
has been hit perhaps hardest by higher-for-longer rate
environment and co should benefit "mightily in a soft-landing
scenario," Citi writes in note to clients
    ** Separately, opportunity to monetize significant marina
real estate is "as imminent as it has ever been", Citi says,
adding that despite management's "historical hesitation to do
so, pressure will only grow if the traditional/fundamental path
to upside proves distant/unlikely"
    ** In early Jul, private equity firm Island Capital Group
proposed to acquire up to 100% interest in HZO's yachting and
marina related services (YMRS) business
    ** In early Jun, Bloomberg reported HZO was in deal talks
with rival OneWater Marine  ONEW.O 
    ** Through Fri close, HZO's shares off 25% YTD

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))