Market Overview

Winter Announcement: Brunswick To Enter Wakeboarding Market

Share:
Winter Announcement: Brunswick To Enter Wakeboarding Market

Wunderlich is positive on Brunswick Corporation (NYSE: BC)’s entry in to the wakeboarding market and sees in-line fourth-quarter results for the company, which makes recreational boats.

Brunswick entered in to the fast growing wake surfing category with the launch of Sea Ray SLX-W 230 boat. This new boat will be officially launched at the upcoming Atlanta Boat Show, taking place on Thursday through Sunday.

Catching The Competitive Waves

As a result, the company will compete with brands such as Malibu Boats Inc (NASDAQ: MBUU), MCBC Holdings Inc (NASDAQ: MCFT), Nautique, Tige, Supra and Moomba.

Brunswick also unveiled industry’s first joystick piloting system for single engine inboard tow sport boats. The piloting system along with wakeboarding entry would boost the company’s competitive advantage and help Brunswick to capture market share quickly.

“With the sport of wake surfing extremely fast growing but still in its nascent stages overall, Sea Ray’s entry into the category has considerable long-term growth prospects. We believe Sea Ray/Mercury’s unique new joystick piloting system to be a competitive advantage,” analyst Rommel Dionisio wrote in a note.

A Look Ahead

Meanwhile, Dionisio expects fourth-quarter earnings of $0.63 a share on revenue of $1.11 billion both relatively in line with consensus forecasts. Brunswick plans to report its fourth-quarter results on January 26.

“We anticipate continued strength across each of Brunswick’s three business categories: Marine Engines, Boats, and Fitness, and for fairly positive body language from management regarding the potential for its marine segments to see solid order flow from the major winter boat shows,” Dionisio added.

Shares of Brunswick closed Monday’s trading at $54.80. Dionisio has a Buy rating, with a target price of $65.

Latest Ratings for BC

DateFirmActionFromTo
Oct 2020Raymond JamesMaintainsOutperform
Oct 2020JP MorganUpgradesNeutralOverweight
Sep 2020CitigroupInitiates Coverage OnNeutral

View More Analyst Ratings for BC
View the Latest Analyst Ratings

 

Related Articles (BC)

View Comments and Join the Discussion!

Posted-In: Analyst Color Long Ideas News Price Target Reiteration Sports Analyst Ratings Movers Best of Benzinga

Latest Ratings

StockFirmActionPT
CCSSusquehannaInitiates Coverage On54.0
ZSWedbushMaintains185.0
SNPSCredit SuisseMaintains265.0
SNOWCredit SuisseMaintains265.0
NACredit SuisseMaintains76.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com