UPDATE: Benchmark Initiates Coverage on Sturm, Ruger & Company
According to a research report published this morning, Benchmark has initiated Sturm, Ruger & Company (NYSE: RGR) with a Buy rating and $60 PT.
In the report, Benchmark commented, "Our price target is based on a 10x FY12 EV/EBITDA multiple, which we believe is appropriate for an industry leader well positioned to expand its share of a double-digit growth market. Sturm, Ruger & Company is a leading manufacturer of pistols, revolvers, and rifles, generating 94% of its sales from the US commercial market. Ruger‘s focus on new products developed specifically for growing market segments and a dramatically improved “product-cell” manufacturing process have allowed the company to generate strong positive free cash flow, returning investors 40% of net income with a variable quarterly earnings dividend, a 2.8% annualized yield."
Sturm, Ruger & Company closed yesterday at $46.89.
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