D.A. Davidson: Headwinds 'Surmountable' For Performance Sports Group
Performance Sports Group Ltd (NYSE: PSG) second-quarter revenue growth of 47 percent makes an ample testament to demand for its baseball and hockey equipment, an analyst said Friday.
D.A. Davidson's Andrew Burns boosted his price target on the company more than 9 percent to $23, citing the company's outlook for growth and widening margins.
Performance closed Friday at $19.96, up 3.2 percent.
Headwinds from a weak ruble and from a likely decline in demand for the company's lacrosse equipment "appear surmountable," according to Burns, who maintained a Buy rating.
But baseball demand could get played out by the fiscal third quarter and this, plus the timing of planned hockey product launches could see a "temporary" stall for revenue growth in this coming spring and summer, Burns said.
Performance this week posted adjusted income of $0.24 a share, up 49 percent for its second quarter ended November 30, on revenue of $172.3 million.
Latest Ratings for PSG
|Sep 2016||Craig-Hallum||Initiates Coverage on||Hold|
|Aug 2016||RBC Capital||Downgrades||Sector Perform||Underperform|
|Aug 2016||DA Davidson||Downgrades||Buy||Neutral|
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