Wells Fargo Upgrades Brunswick Corp (BC) to Outperform; Risks Largely Behind

November 2, 2009 7:58 AM EST

Wells Fargo upgrades Brunswick Corp (NYSE: BC) to Outperform. Valuation range $14-$16

Wells analyst says, "Upgrading BC shares to Outperform as we believe (1) risks of further production cuts are largely behind ('10 production est. +85%), (2) new operating cost structure should allow for enhanced profitability at materially lower production levels, (3) BC is well positioned to gain domestic/international shr (low cost producer, relative financial strength, 44% int'l exposure) mitigating risks of a likely elongated U.S. recovery, and (4) potential peak '14 EPS of $1.70-$3.50. Lowering '09 ests. to ($6.70) from ($4.02) on add'l restructuring/lower production, raising '10 to ($0.92) from ($2.09) on higher production, and initiating an '11 est. of $0.81. Shares have recently retreated from their initial cycle bottom bounce highs and we believe offer an attractive return to our $14-$16 valuation (from $4.00-$4.50) based on our estimated cyclical trough EPS of $0.81."

To see more analyst ratings on BC Click Here.

Brunswick Corporation provides recreation products worldwide.

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