UPDATE: Wunderlich Securities Raises Price Target On Smith & Wesson

In a report published Thursday, Wunderlich Securities analyst Rommel Dionisio reiterated a Buy rating on

, and raised the price target from $13.00 to $15.00. In the report, Wunderlich Securities noted, “We are raising our estimates and price target on shares of Smith & Wesson (SWHC) to reflect what we believe is a critical inflection point in the fundamental recovery of both the company and the firearms industry at large, as we expect retailer inventory destocking, which has plagued firearms manufacturers the past several quarters, will soon come to an end within the next two to three quarters. Smith & Wesson's positive preannouncement for 3Q and increased FY15 guidance reflects positive leading indicators in the industry, specifically a pickup in order activity and retail sales trends in recent weeks. Our new PT of $15, up from $13, reflects increased estimates as well as a smaller 10% relative discount to the peer group, given improving visibility for the industry rebound.” Smith & Wesson closed on Wednesday at $11.89.