Wedbush Downgrades Smith & Wesson Holding (SWHC) to Neutral

Wedbush downgraded Smith & Wesson Holding (NASDAQ: SWHC) from Outperform to Neutral with a price target of $26.00 (from $24.00) following the big run in the stock.

Analyst James Hardiman commented: "While gun industry sales are clearly in ‘surge’ mode, it is difficult to discern just how much of these sales are in fact incremental to the industry versus pulled-forward demand, with plenty of historical examples of both. Hence, given a healthy valuation and a stock that is up more than 150% over the past year (vs. -1% for the S&P), we are taking money off the table, and downgrading from OUTPERFORM to NEUTRAL."

The firm raising FY16 estimates by $0.14, from $1.34 to $1.47, $0.06 above the high-end of management’s guidance of $1.36-$1.41.

For an analyst ratings summary and ratings history on Smith & Wesson Holding click here. For more ratings news on Smith & Wesson Holding click here.

Shares of Smith & Wesson Holding closed at $25.86 yesterday.

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