Wells Fargo Upgrades Brunswick Corp (BC) to Outperform; Risks Largely Behind
BC Hot Sheet
Rating Summary:5 Buy, 1 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 14 | Down: 7 | New: 22
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.
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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