Brunswick rises as analyst raises to 'Outperform'

Analyst upgrades Brunswick, says boating industry may have found the bottom

• On 11:49 am EDT, Friday September 25, 2009

NEW YORK (AP) -- Shares of Brunswick Corp., which makes boats, gym machines and pool tables, rose Friday when an analyst upgraded the stock and said the boating industry has sunk enough to find the bottom.

The stock advanced $1.37, or 14 percent, to $10.90 in morning trading.

RBC Capital Markets analyst Edward Aaron upgraded the stock to "Outperform from "Sector Perform," following a survey of around 150 boat dealers that showed demand is stabilizing. Sales of used boats are holding up relatively well, which Aaron said means boating interest is higher than many think.

Aaron said that while industry conditions remain tough, sales will improve greatly starting in the first half of 2010 through at least 2011.

"While dealers continue to express cautious ordering plans, we were encouraged by progress on inventory levels -- especially for Brunswick dealers -- and improving sales expectations," he wrote in a client note.

Also, inventory levels are more in line, he added.

Aaron's $17 price target implies that the stock has room to jump 78.4 percent from Thursday's closing price of $9.53.