DA Davidson Upgrades Smith & Wesson Holding (SWHC) to Buy; Divestiture Enhances Focus, Earnings and Value
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Price: $21.08 --0%
Rating Summary:
0 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
0 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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DA Davidson upgraded Smith & Wesson Holding (NASDAQ: SWHC) from Neutral to Buy, price target raised to $4.00 (from $3.00).
DA analyst says, "SWHC announced the divestiture of its security solutions business on Thursday, October 6th, after market close. This transaction clearly enhances shareholder value, in our view, by eliminating substantial operating losses and enabling management to focus entirely on the firearms business. While the timing, structure and precise impact of the divestiture are yet to be determined, the bias to earnings is definitely upward."
"We are leaving our FY12 EPS unchanged simply because there are too many moving parts relative to timing, charges, etc., on which we need more clarity. However, we are increasing our FY13 EPS estimate by $0.12 to $0.30. Our FY13 estimate assumes the divestiture of the perimeter security business and includes the firearms division only."
For more ratings news on Smith & Wesson Holding click here and for the rating history of Smith & Wesson Holding click here.
Shares of Smith & Wesson Holding closed at $2.64 yesterday.
DA analyst says, "SWHC announced the divestiture of its security solutions business on Thursday, October 6th, after market close. This transaction clearly enhances shareholder value, in our view, by eliminating substantial operating losses and enabling management to focus entirely on the firearms business. While the timing, structure and precise impact of the divestiture are yet to be determined, the bias to earnings is definitely upward."
"We are leaving our FY12 EPS unchanged simply because there are too many moving parts relative to timing, charges, etc., on which we need more clarity. However, we are increasing our FY13 EPS estimate by $0.12 to $0.30. Our FY13 estimate assumes the divestiture of the perimeter security business and includes the firearms division only."
For more ratings news on Smith & Wesson Holding click here and for the rating history of Smith & Wesson Holding click here.
Shares of Smith & Wesson Holding closed at $2.64 yesterday.
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