BMO Capital Markets upgraded Brunswick Corp. ( NYSE: BC ) to an Outperform rating from Market Perform.
Analyst Gerrick Johnson and team called out a compelling entry point on BC after fears about the macroeconomic backdrop put pressure on shares. It was also noted that demand for boats and marine products continues to be strong, there is a better flow of products and valuation on BC is attractive.
"We think BC shares have pulled back to an attractive valuation owing to investor concerns about the sustainability of demand as well as the impact of a slowing economy. Trading at just 7X our revised 2023 EPS estimates of $11.30 (from $10.00), we believe the current valuation more than takes these factors into account."
The firm is also positive on the long-term setup for BC on its view that changes in lifestyles as a result of the pandemic will contribute to sustained demand even after the pandemic itself has subsided.
BMO Capital Markets assigned a price target of $110 to BC.
Shares of Brunswick Corp. ( BC ) rose 1.05% premarket to $80.80.
For further details see:
Brunswick Corp. gains after BMO upgrades on attractive valuation