[ad_1]
gnatoutdoors/iStock via Getty Images
A trimmed full-year guide and sudden CEO departure was not enough to shake the confidence of some bullish analysts on Vista Outdoor (NYSE:VSTO).
For example, Lake Street Capital’s Markets maintained a Buy rating, explaining that the company’s diverse product range should buoy results in 2023. Further, some seasonality in the earnings disappointment for fiscal Q3 was to be expected.
“We note shooting/hunting seems to be weak and the October NICS background checks for firearms seem to back up that thesis. We think ammunition will remain healthy for several quarters but at some point will see a further slowdown,” the firm’s analysis read. “We think the lower guidance for the Outdoor Products business makes more sense given the pullback in consumer spending with inflationary pressure on consumers.”
While the firm trimmed its price target to $45 from $53, a Buy rating was maintained.
Similarly, the sudden resignation of CEO Christopher Metz did not shift William Blair’s outlook on Vista Outdoor (VSTO). While he noted that the exit, which follows a CFO departure only months prior, “adds to a growing list of management positions that must be brought onboard as Vista moves through a period of significant operational and strategic change,” there remains upside potential. As such, he maintained his Outperform rating.
While shares opened Thursday’s trading with an over 7% decline, the stock made a stark rebound to essentially flat in afternoon trading.
[ad_2]
Source link