Baird Says Brunswick Gets Unique Product Dimension From Thunder Jet Buy

Baird said Brunswick Corporation BC's acquisition of Thunder Jet adds a unique product dimension to the boat portfolio.

Brunswick has acquired Thunder Jet, which designs and builds heavy-gauge aluminum (HGA) boats for undisclosed terms.

Thunder Jet generated revenue of $20 million in 2015, while Brunswick generated nearly $1.3 billion in boat revenue and $4.1 billion in total revenue in 2015. Brunswick indicated the impact on 2016 earnings will be "minimal."

"We added approximately $9.4 million to our 2016 revenue forecast, which had no impact on EPS," analyst Craig Kennison wrote in a note.

Brunswick sees a strategic fit for the HGA boat maker, but acknowledged it represents a slight departure from the primary acquisition mission.

Kennison noted the deal appears to fit within the strategic and financial parameters outlined at the investor meeting in November. Since the second quarter of 2014, Brunswick has closed five deals adding about $150 million to revenue – with a desire to add $350 million (in total) by 2018.

The analyst maintained his Outperform rating and $60 price target on the stock, which is currently down 0.16 percent to $44.88.