- The Street maintains an increasingly bearish outlook towards the recreational boat industry, stemming from a hawkish Fed, which I believe are overblown.
- In the short-term, the Street has overlooked replacement demand from Hurricane Ian that will soften pain from normalizing pandemic-induced demand.
- In the mid to long-term, the Street has also underappreciated MBUU’s potential to capture growth underpinned by changing consumer patterns and its ripe potential for internationalization.
Note that this piece was written on 13-September 2023. For better reading, consider reading the PDF version here.
Executive summary / What really matters
MBUU is a leading designer, manufacturer, and marketer of a diverse range of recreational powerboats. It is a small cap stock with FY23 revenue at US$1.38b.
Investment Thesis 1 - Calmer waves than you think: The Street has overblown the severity of short-term industry headwinds and underappreciated MBUU’s mid to long-term growth runway
