Smith & Wesson Holding Corp. Upgraded to Buy by Lake Street Capital (SWHC)
Smith & Wesson Holding Corp. (NASDAQ:SWHC) was upgraded by analysts at Lake Street Capital from a “hold” rating to a “buy” rating in a research report issued to clients and investors on Thursday, TheFlyOnTheWall.com reports. The firm currently has a $17.00 price objective on the stock, up from their previous price objective of $12.00. Lake Street Capital’s target price points to a potential upside of 46.55% from the company’s current price.
The analysts wrote, “Although the stock has traded sideways since we initiated coverage two months ago, we believe SWHC’s visibility is improving. The firearms industry has faced tough comparisons recently, but seems to have weathered the storm so far, showing growth over the pre-sales-spike periods from two years ago. Now there are only a few more tough comparisons coming up and we believe SWHC is well positioned to meet or exceed expectations near-term. In our opinion, the stock is pricing in an earnings miss and/or guidance reduction when SWHC reports next week. However, given recent background check data and comments from retailers, we are growing confident that this will not happen, which should be a catalyst for the stock. Our price target is raised to $17 from $12 and reflects a P/E multiple of 12.5x, which is at the mid-point of projected earnings growth of 10-15%.”
SWHC has been the subject of a number of other recent research reports. Analysts at Zacks upgraded shares of Smith & Wesson Holding Corp. from a “neutral” rating to an “outperform” rating in a research note to investors on Tuesday, October 15th. They now have a $12.00 price target on the stock. Separately, analysts at Litchfield Hills Research initiated coverage on shares of Smith & Wesson Holding Corp. in a research note to investors on Thursday, October 10th. They set a “buy” rating and a $21.00 price target on the stock. Finally, analysts at Dougherty & Co reiterated a “buy” rating on shares of Smith & Wesson Holding Corp. in a research note to investors on Friday, September 6th. They now have a $14.00 price target on the stock. One analyst has rated the stock with a sell rating, three have assigned a hold rating and five have assigned a buy rating to the stock. The company presently has a consensus rating of “Hold” and a consensus price target of $14.57.
Shares of Smith & Wesson Holding Corp. (NASDAQ:SWHC) traded up 3.66% during mid-day trading on Thursday, hitting $12.025. The stock had a trading volume of 955,070 shares. Smith & Wesson Holding Corp. has a 52 week low of $7.67 and a 52 week high of $13.38. The stock has a 50-day moving average of $11.26 and a 200-day moving average of $10.83. The company has a market cap of $753.4 million and a price-to-earnings ratio of 8.83.
Smith & Wesson Holding Corporation (NASDAQ:SWHC) is a manufacturer of firearms.
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