Analyst forecasts Brunswick earnings scenario

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Wells Fargo Securities reaffirmed its belief that a $2.35-to-$3.35 peak earnings-per-share scenario by 2014 "remains very reasonable" for Brunswick Corp. to achieve.

"The current and planned outboard engine share gains, along with the fact that [Brunswick] profit benchmarks do not include any boat market share gains (which we believe will be likely) is new to us and further strengthens our confidence in our peak cycle earnings power scenarios," senior analyst Tim Conder noted after a meeting Tuesday with Brunswick executives.

"Bottom line: We see likely continued volatility precipitated by broad macro sentiment in [Brunswick] shares within a likely $14-$18 range," he added. "We believe investors should continue to opportunistically use volatility within the context of a gradual cyclical recovery."

Brunswick will continue to increase production, especially in aluminum and fiberglass boats under 25 feet, where the company believes some retail sales have been missed in 2010 because of insufficient inventory, Conder added.

Brunswick's stock opened this morning at $15.81 per share.