The firm lowered its price target to $29 from $36 on shares of the Springfield, MA-based firearms manufacturer.
Demand for guns could soon slide, as federal background checks data have "decelerated meaningfully" in August and September, Wunderlich said in a note cited by MarketWatch.
Additionally, unusually warm weather has weighed on demand for hunting products, which is a negative for the company's long gun business, the firm noted.
Smith & Wesson will probably increase promotional activity, and profit margins could consequently suffer, Wunderlich stated, according to MarketWatch.
The Army's decision against awarding Smith & Wesson a military handgun contract is also an issue, the firm mentioned.
Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of A-.
Smith & Wesson's strengths include its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, solid stock price performance and impressive record of earnings per share growth.
You can view the full analysis from the report here: SWHC
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.