Wunderlich Securities Sees Accelerating Momentum For Brunswick Corporation

In a report published Friday, Wunderlich Securities analyst Rommel Dionisio reiterated a Buy rating and $57.00 price target on

. In the report, Wunderlich Securities noted, “After displaying below-trend performance with flat sales in the first half of the year, which can largely be attributed to the severe winter's impact on the early part of the boating season, Brunswick (BC) displayed a highly encouraging rebound in 3Q, with sales growth of 13% exceeding consensus forecast of 11%. We note that a number of new model introductions of larger, high margin sterndrive boats will hit the market in 4Q, which, combined with increased production capacity, should help drive strong sales and earnings momentum the next few quarters as well. We reiterate our Buy rating on Brunswick and our price target of $57, derived using a 10.5x EV/2015E EBITDA multiple, a 15% premium to the peer group given the still early stage of the boat market cyclical recovery.” Brunswick Corporation closed on Thursday at $44.89.