Continued encouraging numbers from Info-Link's June Bellwether report prompted Wells Fargo analyst Timothy Conder to maintain his position that Brunswick Corp. is gaining market share and will be a strong investment for value-oriented investors.
“We continue to feel [Brunswick] is gaining domestic share within an ongoing stronger-than-expected U.S. retail marine industry,” Conder wrote.
Info-Link's Bellwether Report, which is based on states representing about 50 percent of the U.S. market and three-month rolling average data, indicates that U.S. retail industry unit boat sales in June are up between 12 and 14 percent year over year for powerboats 15 feet and larger.
This trend continues to be driven by aluminum and small fiberglass boats. Sales of aluminum and fiberglass outboard boats 15 feet and larger are up about 15 percent year over year on a three-month rolling average, and sterndrive and jet boat sales are up about 5 percent year over year, the highest growth in four years, on a 3-year rolling average, Conder wrote.
“This recent sign of apparent stabilization in the midsize range of the market is encouraging,” Conder wrote.
This should offset European sales that are likely to weaken, he wrote.
Issues including uncertainty about the coming presidential election and regulatory concerns could influence the trend, Conder wrote, but he still predicts that the industry will show improvement from last year.
“For 2012, we are comfortable that the U.S. industry could be up 6 to 7 percent and the global industry up 3 to 4 percent,” Conder wrote. “Bottom line: We would continue to use macro-related volatility to build positions in [Brunswick], especially for value-oriented investors.”