UPDATE: Wunderlich Securities Initiates Coverage On Escalade, Inc. As Favorable Demographics Help Drive Growth

In a report published Friday, Wunderlich Securities analyst Rommel Dionisio initiated coverage on

with a Buy rating and $16.00 price target. In the report, Wunderlich Securities noted, “We are initiating coverage of Escalade Inc. (ESCA), a producer of sporting goods with leading market share in table tennis, archery, and residential basketball goals, with a Buy rating and $16 price target, derived using a 10.5x EV/2015E EBITDA multiple. Escalade has built an impressive track record of consistent double-digit sales growth (14.7% CAGR the past 4 years), driven by new product innovation and favorable demographic trends. We believe Escalade, having just divested its slower growing print finishing business and now selling off its information security business, should warrant a higher valuation multiple going forward due to becoming a pure play in branded consumer products, greater management focus on sporting goods, and a stronger balance sheet following the divestitures.” Escalade, Inc. closed on Thursday at $11.78.