Feltl and Company Reiterates Buy Rating, $44 PT for Arctic Cat
In a report published earlier today, Feltl and Company reiterated its Buy rating and $44.00 price target for Arctic Cat, Inc. (NASDAQ: ACAT), related to their recent test drives of the Arctic Cat Wildcat 1000i H.O. vehicle.
Feltl and Company went on to say “We think investors should buy ACAT shares on recent weakness. The June quarter will be the first full quarter of Wildcat sales which we think are still strong and will boost results. ACAT is a strong growth company with earnings growth of approximately 145%, 50% and 17% in F2012-F2014, respectively. Management's guidance for F2013 earnings implies 40%+ growth over 145% in the prior year. We think ACAT shares are attractive trading at 13.1x our new F2013 EPS estimate and close to 11x backing out a net cash position of nearly $5 per share. With approximately 30% potential price appreciation to price target, we recommend investors opportunistically buy ACAT shares on the pullback.”
Arctic Cat, Inc. closed yesterday at $33.70.
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