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Benchmark Starts Sturm Ruger (RGR) at Buy; Premier U.S. Firearms Manufacturer Sees Growing Social Acceptance

May 10, 2012 7:30 AM EDT Send to a Friend
Get Alerts RGR Hot Sheet
Price: $63.01 -0.03%

Rating Summary:
    2 Buy, 3 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 23 | Down: 10 | New: 20
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Benchmark initiates coverage on Sturm Ruger (NYSE: RGR) with a Buy. PT $60.00.

Analyst, Mike Greene, said, "Our price target is based on a 10x FY12 EV/EBITDA multiple, which we believe is appropriate for an industry leader well positioned to expand its share of a double-digit growth market. Sturm, Ruger & Company is a leading manufacturer of pistols, revolvers, and rifles, generating 94% of its sales from the US commercial market. Ruger‘s focus on new products developed specifically for growing market segments and a dramatically improved “product-cell” manufacturing process have allowed the company to generate strong positive free cash flow, returning investors 40% of net income with a variable quarterly earnings dividend, a 2.8% annualized yield."

For an analyst ratings summary and ratings history on Sturm Ruger click here. For more ratings news on Sturm Ruger click here.

Shares of Sturm Ruger closed at $46.89 yesterday.




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