Lake Street Capital upgraded shares of Smith & Wesson Holding Corp. (NASDAQ:SWHC) from a hold rating to a buy rating in a research report sent to investors on Thursday morning, TheFlyOnTheWall.com reports. The firm currently has $17.00 price target on the stock, up from their previous price target of $12.00.
“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%.,” the firm’s analyst wrote.
A number of other firms have also recently commented on SWHC. 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. 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. One equities research analyst has rated the stock with a sell rating, three have assigned a hold rating and five have given a buy rating to the company. The company has a consensus rating of Hold and an average target price of $14.57.
Smith & Wesson Holding Corp. (NASDAQ:SWHC) opened at 11.98 on Thursday. Smith & Wesson Holding Corp. has a 52 week low of $7.67 and a 52 week high of $13.38. The stock’s 50-day moving average is $11.29 and its 200-day moving average is $10.84. The company has a market cap of $750.6 million and a P/E ratio of 8.83.
Smith & Wesson Holding Corporation (NASDAQ:SWHC) is a manufacturer of firearms.
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