Benchmark Company Reiterates Buy Rating, $13 PT on Smith & Wesson Holding Corporation

In a report published Friday, Benchmark Company reiterated its Buy rating and $13.00 price target on Smith & Wesson Holding Corporation

. Benchmark noted, “Reiterate BUY on long-term, secular growth opportunity. We increased our FY13 revenue and EPS estimates to $561 million and $1.05 vs. our previous $538 million and $0.88 estimate on the Q2FY13 results and new guidance. We also increased our FY14 revenue estimate to $581 million vs. our previous $556 million estimate; we remind investors that, while our FY14 revenue estimate represents 3% y/y growth, approximately 85% of the company's Walther licensed product revenue will fall off in FY14 with the end of SWHC's contract with Walther. Excluding Walther, our FY14 estimate represents 9.5% y/y growth; furthermore, the elimination of the lower-margin Walther products should increase margins, in our view. We reiterate our BUY rating and $13 price target, which reflects a 6.6x FY13 EV/EBITDA multiple and a 6.1x FY14 EV/EBITDA multiple.” Smith & Wesson Holding Corporation closed on Thursday at $10.84.