Acushnet Holdings Corp shares slumped more than 9% at $67 after JP Morgan downgraded the golf company to "Underweight" from "Neutral," given a flat revenue expectation for 2025 and lower-than-expected earnings.
The bank reduced its price target for GOLF to $64 amid a challenging operating environment, including foreign exchange headwinds, softer consumer demand in key markets, and increased operational expenses. JP Morgan now expects Acushnet’s 2025 revenue to remain flat year-over-year, compared to Wall Street’s consensus of 4.5% growth.
The brokerage also projects a significant decline in Acushnet’s 2025 earnings per share, driven by higher operational costs linked to investments in technology and fitting networks, coupled with limited revenue growth.
Acushnet, which owns the Titleist and FootJoy brands, faces mounting challenges in international markets, particularly in Korea, which accounts for about 10% of its revenues. The firm is grappling with inventory normalization in its footwear segment and FX headwinds, expected to weigh on topline growth by approximately 200 basis points in 2025.
