Vista Outdoor (VSTO) PT Lowered to $31 at KeyBanc

KeyBanc lowered its price target on Vista Outdoor (NYSE: VSTO) to $31.00 (from $39.00) while maintaining a Overweight rating.

The analyst comments "Our recent channel checks lead us to believe that retail demand for firearms/ammo has come under incremental pressure during January. This combined with elevated channel inventory levels leads us to expect retailers/distributors to significantly curtail orders, which we expect to provide a drag on results near term. While we believe Street expectations reflect challenges in VSTO’s Outdoor Products segment, we believe this incremental weakness for Shooting Sports could be another step down vs. current Street expectations. That said, we reiterate our Overweight rating given our positive long-term outlook. As we progress toward the end of CY17, we believe there will likely be restocking in Shooting Sports and some stability in Outdoor Products setting up for more stable trends in CY18 where we believe VSTO’s brands are poised for market share gains."

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