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NEW YORK (TheStreet) -- Brunswick Corp. (BC) - Get Brunswick Corporation Report stock was upgraded by RBC Capital Markets to "outperform" from "sector perform" with a price target of $61.

The company manufactures recreation products, like boats, boat engines, and fitness and billiards products.

The variety in Brunswick's product offerings will make its business more stable, according to analysts.

Brunswick fitness products, which include commercial and consumer training equipment, and its parts and accessories division are expected to account for more than half of total sales by the end of the decade, according to RBC Capital.

The company's boat engine sales are expected to increase about 5% annually over the next two years, which would add to the overall parts and accessories sales of an estimated $240 million, analysts added.

Additionally, Brunswicks management has shown interest in acquiring companies to expand its fitness products division. Any acquisition will lead to double digit growth.

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The stock opened up 1.15% to $51.77.

Separately, shares of BRUNSWICK CORP (BC) stock were up today by $0.48 (0.95%) as of the close of trading. By the end of trading, 733.76K shares of BRUNSWICK CORP exchanged hands as compared to its average daily volume of 1.07 million shares. The stock ranged in price between $50.03 to $51.28 after opening the day at $50.95 as compared to the previous trading day's close of $50.66. Overall, BRUNSWICK CORP led the S&P 500 which was up 0.61%. Important items of note for BRUNSWICK CORP and possible rationale for parts of today's stock move go as follows:

TheStreet Ratings team rates BRUNSWICK CORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

"We rate BRUNSWICK CORP (BC) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, reasonable valuation levels, growth in earnings per share and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company shows low profit margins."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • BC's revenue growth has slightly outpaced the industry average of 7.7%. Since the same quarter one year prior, revenues rose by 10.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • BRUNSWICK CORP has improved earnings per share by 13.5% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, BRUNSWICK CORP reported lower earnings of $2.04 versus $8.03 in the prior year. This year, the market expects an improvement in earnings ($2.85 versus $2.04).
  • Despite currently having a low debt-to-equity ratio of 0.38, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.08 is sturdy.
  • You can view the full analysis from the report here: BC Ratings Report