Brunswick, the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Randal Konik from Jefferies upgraded the rating on the stock to a Buy and gave it a $115.00 price target.
Claim 70% Off TipRanks Premium
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential
Randal Konik has given his Buy rating due to a combination of factors that, in his view, materially strengthen Brunswick’s earnings outlook and justify meaningful upside in the stock. He highlights that the broader boat demand cycle is set to improve beginning in 2026 as consumer spending on large recreational goods returns to growth, dealer inventories normalize from unusually lean levels, and anticipated Fed rate cuts reduce financing costs for both dealers and end customers. Konik also underscores that Brunswick’s strong competitive position in the engine market and its well-regarded management team enhance the company’s ability to capitalize on this cyclical recovery.
Konik further argues that Brunswick’s business mix has structurally improved, with a greater emphasis on higher-margin propulsion, parts and accessories, and recurring revenue streams such as its boat club and aftermarket offerings, all of which support more resilient profitability. Disciplined production and inventory management, coupled with consolidation of manufacturing facilities, are expected to drive margin improvement as volumes recover toward historical levels. He points to robust free cash flow generation, declining capital intensity, and a balanced capital allocation strategy—dividends, buybacks, and debt reduction—as key supports for shareholder value. Taken together with his 2027 earnings forecast far above consensus and a target price of $115 based on that enhanced earnings power, Konik concludes the stock is undervalued and merits a Buy rating.