Tuesday, B.Riley raised its rating on Brunswick Corp (NYSE: NYSE:BC) from Neutral to Buy, while also increasing the price target to $108 from the previous $100. The upgrade comes after the company's stock declined approximately 11% since an early January downgrade. The firm noted that the consensus sell-side rating for Brunswick is currently at its most bearish in a decade.
The decision to upgrade Brunswick's rating was influenced by several positive factors observed at the Miami International Boat Show (MIBS). These factors include encouraging underlying demand trends and potential for market share gains. Additionally, Brunswick's initiatives to improve operating margins and what B.Riley perceives as conservative guidance for 2024 and beyond have contributed to the more favorable outlook.
B.Riley's new price target of $108 reflects an $8 increase from the previous target. This adjustment is based on the belief that Brunswick has the potential to outperform market expectations. The firm's analysis suggests that the recent dip in Brunswick's share price, along with the pessimistic consensus rating, presents a buying opportunity for investors.
Brunswick Corp, which operates in the recreational boating industry, has been the subject of close analysis by B.Riley. The firm's commentary points to a combination of demand trends, market share opportunities, margin boosting efforts, and conservative guidance as key drivers for the upgraded rating and price target.
The upgrade by B.Riley is significant as it indicates a shift in the firm's perspective on Brunswick Corp's stock performance and market position. The increase in the price target to $108 from $100 is a signal of confidence in the company's future financial performance.
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