MarineMax ( NYSE: HZO ) shares rose sharply in premarket trading on Tuesday as B. Riley analyst Eric Wold shifted to a bullish view.
Wold indicated that the company’s “meaningful real estate holdings remain underappreciated” and highlighted the resilience of the premium boat category. Further, the company’s recent acquisitions are expected to boost margins moving forward.
“With HZO focusing primarily on the premium boat category, management reinforced that the company is not experiencing any softness in new boat demand in this environment—especially with those buyers that are able to write checks and are not dependent on financing,” he told clients, detailing conversations and presentations from the Miami International Boat Show last week. “With an expectation by management that larger, premium boats are likely to remain under-inventoried for quite some time, gross margins are also expected to remain healthy in this category. We believe this should provide the company with some level of a safety net in this inflationary environment that could pressure some smaller dealers and less premium brands.”
Wold upgraded the stock from Neutral to Buy and hiked his price target to $52 from a prior $52. MarineMax ( HZO ) stock surged 5.48% in premarket hours on Tuesday.
Read more on the company’s recent earnings result .
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MarineMax stock rises as B. Riley upgrades to Buy