Analyst expects June data to show boat sales gainsPosted on Written by Reagan Haynes
Marine lenders say sales in June and early July were higher than expected, tracking upward between 7 and 9 percent and indicating pent-up demand in regions most affected by weather in the early part of 2014.
Wells Fargo analyst Tim Conder said that when he caught up with industry lending contacts on Thursday, they confirmed that sales had exceeded lenders’expectations, including in the upper Midwest and Northeast—areas most affected by weather for the year to date.
Conder expects that flash data for June U.S. industry retail sales from Statistical Surveys Inc., set to be released next week, will show “sequential acceleration from May’s ‘flash’data.”
Additionally, sources indicate that Canadian retail boat activity has similarly accelerated in June after weather restraints through May.
“It appears that 2014 could be setting up similar to 2013, which saw strong retail sales during Q3 2013 following Q2 2013 weather-related challenges,”Conder wrote to investors.
Conder maintains that the industry for 2014 will be up 8 to 9 percent in the traditional powerboat segment and that the ski and wakeboard and PWC segments will likely see double-digit growth.
“In our view, Brunswick Corp. represents the best value within our powersports coverage,”Conder wrote, advising to “aggressively build positions.”