Wells Fargo analysts are giving Malibu Boats stock an initial rating of “outperform,” estimating that shares offer up to a 20 percent total return, based on the bank’s 2015 estimates.

“Malibu’s ongoing product innovation, crossover interest from adjacent boat segments and geographic expansion against a positive back group of U.S. boat industry recovery fundamentals position this global leader in the performance sportboat segment for consistent share gains,” analysts wrote in a report issued Tuesday.

Wells Fargo projects that Malibu will see 11 to 12 percent annual revenue and EBITDA margin expansion toward 20 percent by fiscal year 2016. Analysts have set a valuation range of $20 to $22.

“We have to monitor the defensibility of the company’s intellectual property, but believe existing [and] pending patents and ongoing innovation position the company well versus key competitors,” the report said.

Malibu began trading publicly Jan. 31.