) to Buy, with a price target of $24, citing improving fundamentals of the boating industry and the company's strong strategic positioning. Since February, MarineMax's shares have declined by 37 percent. Analyst David Macgregor mentioned that the current valuation did not reflect the company's strategic positioning and the improving fundamentals of the boating industry. In the report Longbow Research noted, "HZO has not been paying taxes as a consequence of operating losses in the downturn. Having now delivered a cumulative profit over the last three years, tax law dictates that in 2016 HZO must revert back to being a normal taxpayer." MarineMax is now expected to begin paying taxes next year at a rate of 27-38.5 percent. The EPS estimates for 4Q15 and FY15 have been reduced from $0.14 to ($0.09) and from $0.52 to ($0.32), respectively. "We feel HZO will maintain growth through a combination of (a) solid core growth, (b) a strong new product delivery quarter against an expanded backlog and 27% increase in customer deposits, and (c) an improvement in weather across most of the U.S.," the report added. Macgregor said that share repurchases by the company and seasonal trading patterns were other catalysts that could boost MarineMax's valuation in the near future.