UPDATE: Wunderlich Securities Reiterates Buy Rating, Raises PT on Brunswick Corporation on Encouraging Acceleration in Sterndrive Boat Sales

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

, and raised the price target from $57.00 to $65.00. In the report, Wunderlich Securities noted, “A strong rebound in larger fiberglass sterndrive boat sales drove upside to 4Q estimates for Brunswick (BC). Although initial 2015 EPS guidance was slightly below the consensus forecast, given management's long history of underpromising and overdelivering, we would not be surprised if consensus estimates remained close to where they were. Given the encouraging rebound in the high-margin luxury yacht class, we believe this increases visibility behind the longer-term recovery of that important segment of the boat market. Therefore, on such improving visibility, we now believe shares of BC should trade at a 25% premium to the peer group average (we previously assumed a 15% premium), which now implies an 11.5x EV/2015E EBITDA multiple, generating our new price target of $65.” Brunswick Corporation closed on Thursday at $55.73.