Megan Alexander, an analyst from Morgan Stanley, maintained the Hold rating on Brunswick (BC – Research Report). The associated price target remains the same with $78.00.
Megan Alexander’s rating is based on several key factors influencing Brunswick’s current financial outlook. The company’s third-quarter results were mostly aligned with expectations, with earnings per share slightly below consensus estimates. However, a notable revision in the full-year guidance, particularly a significant decrease in the fourth-quarter earnings projection, has raised concerns.
The main issue appears to be within the propulsion segment, where production levels have been reduced to maintain appropriate inventory levels. This strategic move is aimed at setting the company up for potential growth in 2025. Despite unchanged industry expectations for boat retail, this de-stocking might be viewed positively, addressing inventory concerns. Additionally, management’s optimistic outlook for 2025 could positively influence market perception, though a cautious stance is still warranted.
According to TipRanks, Alexander is a 3-star analyst with an average return of 1.8% and a 48.15% success rate. Alexander covers the Consumer Cyclical sector, focusing on stocks such as Brunswick, Hasbro, and Topgolf Callaway Brands.
In another report released on October 22, J.P. Morgan also maintained a Hold rating on the stock with a $74.00 price target.
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Brunswick (BC) Company Description:
Brunswick Corp. engages in the design, manufacture, and marketing of recreation products, including marine engines, boats, fitness equipment, and active recreation products. It operates through the following segments: Marine Engine and Boat. The Marine segment manufactures and sells recreational marine engines and marine parts and accessories. The Boat segment produces and markets boats such as fiberglass pleasure, sport cruiser, sport fishing and center-console, offshore fishing, aluminum and fiberglass fishing, pontoon, utility, deck, inflatable, and heavy-gauge aluminum. The company was founded by John Brunswick in 1845 and is headquartered in Mettawa, IL.
