UPDATE: Wunderlich Securities Initiates Coverage On Nautilus On Strong Growth Momentum

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

with a Buy rating and $15.00 price target. In the report, Wunderlich Securities noted, “We are initiating coverage of Nautilus Inc. (NLS) with a Buy rating and $15 target, derived using an EV/2015E EBITDA multiple of 12.0x. Nautilus has demonstrated solid top-line growth, with a three-year sales CAGR of 9%, by bringing innovative fitness equipment products to market under leading brand names such as Bowflex and Nautilus. Significant operating leverage from rising sales, combined with more cost-efficient online media advertising and positive product mix, drove operating margin expansion of nearly 1300 bps the past three years. With major new introductions about to hit the market, such as the new ‘smart' Bowflex dumbbells, we believe strong growth momentum can be sustained the next several quarters, positioning NLS as an attractive opportunity for growth-oriented investors.” Nautilus closed on Thursday at $12.92.