Eric Wold, an analyst from B.Riley Financial, reiterated the Buy rating on Vista Outdoor (VSTO – Research Report). The associated price target is $38.00.
Eric Wold has given his Buy rating to Vista Outdoor’s stock due to a combination of factors. The company’s 2Q24 results were slightly ahead of expectations, and the announced sale of the Sporting Products segment has allowed focus to shift to the Outdoor Products segment. Current trends in this segment are stabilising, and there is potential for increased demand in FY25. Furthermore, the company’s shares are believed to be undervalued based on the projected value of the Outdoor Products segment as it becomes a standalone public company in 2024.
In addition, the company has confirmed significant opportunities for cost savings through its “GEAR Up” transformation program. These savings are projected to be substantial in the Outdoor Products segment, with an expectation of $125M in annual cost savings by FY27, a significant increase from the original estimate of $25M. Management’s reaffirmation of the lowered FY24 guidance and the company’s net sales of $2.725B-$2.825B also feed into Wold’s positive assessment. Furthermore, no major estimate changes were needed, maintaining the stability of the company’s financial outlook.
In another report released on October 19, Lake Street also assigned a Buy rating to the stock with a $29.00 price target.
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Vista Outdoor (VSTO) Company Description:
Vista Outdoor, Inc. engages in the design, manufacture, and marketing of consumer products in the outdoor sports and recreation markets. It operates through the following segments: Shooting Sports and Outdoor Products. The Shooting Sports product lines include centerfire ammunition, rimfire ammunition, shotshell ammunition, reloading components and firearms. The Outdoor Products product lines include action sports, archery and hunting accessories, camping, global eyewear and sport protection products. The company was founded in 2014 and is headquartered in Anoka, MN.
Read More on VSTO:
- Vista Outdoor sees FY24 adjusted EPS $3.65-$4.05, consensus $4.18
- Vista Outdoor reports Q2 adjusted EPS 96c, consensus $1.05
- Vista Outdoor says VP Andy Keegan to serve as CFO of Revelyst amid seperation
- Vista Outdoor price target lowered to $25 from $29 at Roth MKM
- Vista Outdoor price target lowered to $29 from $38 at Lake Street
