Analyst sees a more stable Brunswick in 2010

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An analyst covering Brunswick Corp. says he is raising his "fair value estimate" for the company.

"We are raising our fair value estimate for Brunswick and lowering our fair value uncertainty rating in light of the stabilization of the firm's liquidity position," wrote Philip Gorham, a stock analyst for Morningstar. "However, we think that Brunswick still faces considerable business and financial risk."

Gorham said he believes the immediate threat to Brunswick's survival has eased, with the demand for boats and the company's liquidity position stabilizing.

"As a result, we have lowered the weight of the bankruptcy scenario in our fair value estimate to 5 percent from 25 percent, and this is the primary driver of the increase in our fair value estimate," Gorham wrote.

"Although we think the immediate threat to Brunswick's survival has eased, we do not think the firm is yet out of the woods. Demand for boats is still very weak, and a major dealer default could yet plunge Brunswick into a liquidity crisis," he added.

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