Wunderlich is positive on Brunswick Corporation (NYSE: BC)’s entry in to the wakeboarding market and sees in-line fourth-quarter results for
the company, which makes recreational boats.
Brunswick
entered in to the fast growing wake surfing category with the launch of Sea Ray SLX-W 230 boat. This new boat will be officially
launched at the upcoming Atlanta Boat Show, taking place on Thursday through Sunday.
Catching The Competitive Waves
As a result, the company will compete with brands such as Malibu Boats Inc (NASDAQ: MBUU), MCBC Holdings Inc (NASDAQ: MCFT), Nautique, Tige, Supra and Moomba.
Brunswick also unveiled industry’s first joystick piloting system for single engine inboard tow sport boats. The piloting system
along with wakeboarding entry would boost the company’s competitive advantage and help Brunswick to capture market share
quickly.
“With the sport of wake surfing extremely fast growing but still in its nascent stages overall, Sea Ray’s entry into the
category has considerable long-term growth prospects. We believe Sea Ray/Mercury’s unique new joystick piloting system to be a
competitive advantage,” analyst Rommel Dionisio wrote in a note.
A Look Ahead
Meanwhile, Dionisio expects fourth-quarter earnings of $0.63 a share on revenue of $1.11 billion both relatively in line with
consensus forecasts. Brunswick plans to report its fourth-quarter results on January 26.
“We anticipate continued strength across each of Brunswick’s three business categories: Marine Engines, Boats, and Fitness, and
for fairly positive body language from management regarding the potential for its marine segments to see solid order
flow from the major winter boat shows,” Dionisio added.
Shares of Brunswick closed Monday’s trading at $54.80. Dionisio has a
Buy rating, with a target price of $65.
Latest Ratings for BC
Date |
Firm |
Action |
From |
To |
Dec 2016 |
CL King |
Initiates Coverage On |
|
Buy |
Sep 2016 |
Imperial Capital |
Initiates Coverage on |
|
Outperform |
Feb 2016 |
Citigroup |
Maintains |
|
Buy |
View More Analyst Ratings for
BC
View the Latest Analyst Ratings
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