Analyst maintains high rating for Brunswick


Brunswick Corp. remains well-positioned to gain market share in boat sales, causing Wells Fargo analyst Timothy Conder to leave its stock rating of "outperform" intact.

“We should get an indication on May U.S. boat sales from some of our industry contacts this week and from third-party reporting groups between the 21st and 24th,” Conder wrote in his analysis. “[Brunswick] shares should continue to trade near term on macro concerns and May U.S. retail sales. Bottom line: Continue to build positions in [Brunswick], in our view.”

Conder will closely monitor an industry meeting today precipitated by the Coast Guard pressing manufacturers to standardize the period that encompasses a boat model year.

Model years now end between June and September, and changing that “could have greater implications for smaller manufacturers if the standardized industry model year­end requires greater seasonal flexible labor/working capital,” Conder said. “Some proposals range from a 2­year-long 'model year' to a 1­year-long model year ending on an agreed upon date, such as June 30.

Brunswick closed trading Wednesday at $20.69.

Click here for Conder’s full report.