Following investor meetings with Brunswick Corp., RBC Capital Markets says the company is attractive for long-term investors, but those interested in “shorter time horizons should look elsewhere.”
“While our recent marketing day with BC management did not ease our concerns over the direction of the U.S. boating market and risk to estimates, it did add to our conviction that a sound business strategy and low expectations will ultimately provide the ingredients for a meaningful recovery in the stock,” analyst Edward Aaron wrote in a report released this morning.
Aaron noted Brunswick has not given any 2008 earnings guidance and did not commit to doing so. He questioned why consensus is still in the 70 cent range and said RBC was maintaining a “Street-low” estimate of 28 cents.
He did credit Brunswick’s management team with providing a candid view of the business environment, saying such candor has helped maintain the company’s credibility.
At midday, Brunswick’s stock was trading at $14.19 per share, down from an opening of $14.42.