UPDATE: Wedbush Securities Downgrades Smith & Wesson to Neutral; Recent Surge Fleeting
Wedbush Securities reduced its rating on Smith & Wesson (NASDAQ: SWHC) from Outperform to Neutral and lowered its price target from $11 to $9.
Wedbush Securities commented, "Given our concerns that strong recent firearms demand has pulled forward sales from next year, combined with the co. operating at maximum capacity the past two quarters (so fundamentals cannot get much better than they have been), we no longer feel shares of SWHC can outperform the peer group, and should thus trade at a 30% discount. Such a 30% discount implies an EV/C2013E EBITDA multiple of 5x, which on our lowered estimates generates our new PT of $9."
Smith & Wesson closed at $10.03 on Monday.
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