PxPixel
Analysts bullish on Malibu Boats stock - Trade Only Today

Analysts bullish on Malibu Boats stock

Author:
Publish date:

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.

Related

New boat sales relatively flat in June

New boat sales in June grew marginally, with a 1.1 percent rise in the main powerboat categories and just 0.2 percent growth overall, according to preliminary data from Statistical Surveys Inc., a Michigan firm that tracks registrations.

Mazu releases new sportfishing app

Technology and satellite communications company Mazu has launched a sportfishing app that seeks to give anglers weather and sea state information, and provide powerful communications capabilities via satellite.