UPDATE: Wunderlich Securities Initiates Buy, $44 PT on Pool Corporation on Record EPS Despite Housing Weakness

Wunderlich Securities initiates its coverage on Pool Corporation

with a Buy rating and a price target of $44. Wunderlich Securities notes, "We believe investors should be more appreciative of Pool's performance, as the company should deliver record earnings in 2012, despite a decline in residential investment of 55% from Q405 to Q112. Success stems from a variety of factors: non-cyclical components within its revenue stream, steady market share gains, cost-cutting programs, and price inflation. Pool traded at $50+/share during its 2005-2006 cycle peak. We believe cyclical tailwinds should drive a recovery in deferred pool equipment spending, new pool construction, and irrigation/landscape installations in the next 5+ years and support greater profit levels and a higher stock price." POOL closed at $36.80 on Thursday.