Smith & Wesson Rating Reiterated by Benchmark Co. (SWHC)
“Smith & Wesson reported a strong Q3FY13 (January-end), with sales and EPS from continuing operations of $136 million and $0.26 vs. consensus estimates of $134 million and $0.23. Total firearm backlog at the end of the quarter was $668 million, up more than 236% y/y. More importantly, due to a quicker than expected increase in capacity, management increased its FY13 guidance from $555-$560 million in sales and $1.00-$1.05 in EPS to $575- $580 million in sales and $1.17-$1.19 in EPS, not including potential positive impact from the $15 million share repurchase program availability. This guidance now represents 40%-41% top-line growth, with approximately a 22% operating margin, up 1,200 bp year over year. We reiterate our BUY rating and $13 price target, which reflects a 5.7x FY13 EV/EBITDA multiple and a 5.6x FY14 EV/EBITDA multiple.,” Benchmark Co.’s analyst wrote.
A number of other analysts have also recently weighed in on SWHC. Analysts at Wedbush reiterated a neutral rating on shares of Smith & Wesson in a research note to investors on Wednesday. They now have a $9.00 price target on the stock. Separately, analysts at Zacks upgraded shares of Smith & Wesson from a neutral rating to an outperform rating in a research note to investors on Tuesday, January 22nd. They now have a $9.70 price target on the stock. Finally, analysts at Cowen downgraded shares of Smith & Wesson from an outperform rating to a neutral rating in a research note to investors on Wednesday, December 19th.
Shares of Smith & Wesson opened at 9.90 on Wednesday. Smith & Wesson has a one year low of $5.99 and a one year high of $11.25. The stock’s 50-day moving average is currently $9.18. The company has a market cap of $655.9 million and a P/E ratio of 11.94.
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