The firm said it raised its rating on the worldwide designer, manufacturer, and marketer of recreational products, based on a solid core business created by the company's business divestitures.
B. Riley also expects top and bottom line growth to increase in the third quarter due to a cycle of new products.
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The firm increased Brunswick's price target to $52 from $47.50. Separately, TheStreet Ratings team rates BRUNSWICK CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation: "We rate BRUNSWICK CORP (BC) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income, reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures and growth in earnings per share. We feel these strengths outweigh the fact that the company shows weak operating cash flow." Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Leisure Equipment & Products industry average. The net income increased by 14.4% when compared to the same quarter one year prior, going from $49.80 million to $57.00 million.
- The current debt-to-equity ratio, 0.42, is low and is below the industry average, implying that there has been successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.82 is somewhat weak and could be cause for future problems.
- BC, with its decline in revenue, slightly underperformed the industry average of 5.0%. Since the same quarter one year prior, revenues slightly dropped by 2.6%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- You can view the full analysis from the report here: BC Ratings Report
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