(Bloomberg) -- Backyard swimming pools are gaining popularity as the coronavirus pandemic skewers summer activities that involve big crowds. At least one analyst expects the recent spike in demand could last for years.
William Blair & Co. analyst Ryan Merkel said results from pool supply and equipment distributor Pool Corp. show “business is booming with people spending more time at home and choosing to invest in outdoor living.” The company saw strong demand in May as authorities eased restrictions on construction, sending shares up as much as 4.8% Thursday.
Pool Corp. is trading at its highest since going public in 1995. Merkel sees trends persisting if consumers remain wary of swimming in public pools, or if a virus flare-up later this year closes municipal locations into 2021. New pool installation could also drive increased maintenance sales. He boosted expectations for Pool Corp.'s 2020 earnings and expects another 15% growth next year.
“There could be a long tail to this demand as the stay-at-home theme could last multiple years and awareness of the benefits of pool ownership should rise,” Merkel said in a research note. He rates the stock outperform.
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