B. Riley Constructive on Marine Industry

Publish date:
B. Riley upgraded Malibu Boats from a Neutral rating to a Buy rating.

B. Riley upgraded Malibu Boats from a Neutral rating to a Buy rating.

Financial firm B. Riley became increasingly confident that the boating industry will stay resilient during the covid-19 outbreak, and that boat demand will remain strong.

Analyst Eric Wold raised price targets for all of the companies in the group — Brunswick Corp., MarineMax, MasterCraft, Malibu and Marine Products Corp., maker of Chaparral and Robalo.

He also upgraded Malibu Boats from a Neutral rating to a Buy rating. Wold had downgraded Malibu and MasterCraft to Neutral last month, anticipating the reverberating effects from widespread shutdowns.

“With checks indicating that retail demand has been strengthening week-to-week into the Memorial Day holiday weekend and an expectation that this summer will represent a significant improvement over last year, we are raising our target multiples and price targets for the majority of the group — and upgrading MasterCraft from Neutral to Buy,” wrote Wold in a report.

Manufacturers have made “significant progress” in reducing elevated dealer inventories after a slower-than-expected start to the selling season, said Wold.

“Nevertheless, we understand the 50 to 75 percent production losses during [the second quarter of 2020] after manufacturing facilities were closed in late March are having an incrementally positive impact on dealer inventories — with most of the production in the initial weeks geared toward filing orders for already-purchased boats (as opposed to merely adding to stock inventory levels),” wrote Wold. 


Suzuki Powers Forest River’s New Nepallo Pontoon Boats

The new Nepallo line of pontoon boats with Suzuki engines will be sold at select Camping World and Gander RV & Outdoors stores.

West Marine CEO to Keynote Annual MRA Event

With a “Climate for Change” theme, the Marine Recreation Association’s Educational Conference and Trade Show is set for Oct. 11-13.

Skeeter Owner’s Tourney Held on Lake Fork

A field of 2,000 anglers in 1,000 boats saw a nearly 10-pound bass capture first place in the annual Skeeter owner’s tournament.

Email Remains a Vital Marketing Tool for Dealers

A content marketing staple, emails can consistently deliver valuable and relevant information, if done correctly.

ABYC to Publish Largest-Ever Standards Manual

The nonprofit is offering pre-orders until June 18 of its updated standards manual, with a publication date of July 31.

Furuno, Simrad Add SiriusXM Fish Mapping Suite

The subscription-based service offers offshore anglers a suite of technology with which to locate and catch more fish.