Despite a steep drop in July boat sales across the industry, Wells Fargo Securities retained its rating of Brunswick Corp.
"We believe our $2.35-$3.35 peak earnings-per-share scenarios by '14 remains reasonable, based on year-to-date U.S. retail results and management's commentary and outlook," senior analyst Tim Conder wrote.
"[Brunswick's] current and planned outboard engine share gains, along with the fact that Brunswick's profit benchmarks do not include any boat market share gains (which we believe will be likely), strengthens our confidence in our peak cycle earnings power scenarios," he added.
Conder said he expected Brunswick's shares to remain in the range of $14 to $18.
"We believe investors should continue to opportunistically use volatility within the context of a gradual cyclical recovery," he added.
Brunswick's stock opened this morning at $14.80 per share.