Shares of Brunswick Corp. tumbled last week after an analyst downgraded shares of the boatbuilder, saying the company still has earnings potential, but it faces soft retail sales in the first quarter.
Raymond James analyst Joseph D. Hovorka cut his rating on the company to "Market Perform" from "Outperform," according to a report in Bloomberg BusinessWeek.
The analyst said the company's shares have been rising as investors like the positive sales trends, improved dealer inventory levels and better balance sheet for the company.
Hovorka said the company's earnings power "remains significant" because its costs are improving. But he said shares could be volatile because of timing of the company's peak earnings.
"We believe a reversal of the strengthening trend in retail may cause investors to reassess the timing of earnings recovery," he said.
Brunswick's stock this morning stood at $15.91 per share in early trading, up from its previous close of $15.73. Its 52-week high and low are $16.62 and $3.36.