Brunswick Corp. is gaining domestic share within a stronger-than-expected U.S. retail marine industry, according to Wells Fargo analyst Timothy Conder.
Info-Link’s new Bellwether Report, which shows signs of stabilization in the mid-size range of the boat sales market, is encouraging, Conder said in the report, which was released today.
That, combined with solid international sales (with the exception of Europe), should offset weaker European sales, Conder said.
“For 2012, we are increasingly comfortable that the U.S. industry could be up 6 to 7 percent and the global industry 3 to 4 percent,” Conder wrote.
“Post the election, we believe industry concerns will not be any worse than the current trajectory and could prove modestly more constructive,” Conder said.
The bottom line: “We would continue to use macro-related volatility to build positions in Brunswick Corp.”
Info-Link's Bellwether Report indicates that in May, aluminum and fiberglass boat sales of units 15 feet and above were up about 10 or 11 percent, higher than Wells Fargo’s previous projection of 7 or 8 percent, Conder noted.
Bellwether states represent about 50 percent of the U.S. market.
That growth continues to be driven by aluminum and small fiberglass boats as outboard boats, aluminum and fiberglass, in the 15-plus foot range are up about 17 percent on a three-month rolling average while sterndrive/jet boat sales are up 3 percent, Conder said, the highest growth in four years on a three-month rolling average.
“This recent sign of apparent stabilization in the mid-size range of the market is encouraging,” he said.
Brunswick stock closed Thursday at $20.96 a share. The 52-week high was $27.40 and the 52-week low was $13.19.