Analyst Explains Why They Upgraded Their Rating on Malibu Boats (MBUU)


Malibu Boats (NASDAQ: MBUU) received a Buy rating and a $60 price target from B.Riley FBR analyst Eric Wold today. The company’s shares closed on Friday at $53.01.

Wold noted:

“On Wednesday (9/12), we attended the Malibu Boats (MBUU) Investor Day held at various locations around Knoxville, TN. Although we already went into the Investor Day with a positive stance on underlying boat demand trends within the Recreational Marine segment from our ongoing channel checks, we came away increasingly optimistic about underlying trends within the core ski/wake segment, upside opportunities underlying the two acquisitions as well as margin expansion potential of management’s vertical integration strategy.”

According to TipRanks.com, Wold is a 5-star analyst with an average return of 12.6% and a 63.7% success rate. Wold covers the Services sector, focusing on stocks such as Reading International Inc, National Cinemedia, and AMC Entertainment.

The word on The Street in general, suggests a Strong Buy analyst consensus rating for Malibu Boats with a $56.10 average price target, representing a 5.8% upside. In a report issued on September 7, Raymond James also maintained a Buy rating on the stock with a $61 price target.

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Malibu Boats’ market cap is currently $1.09B and has a P/E ratio of 39.12. The company has a Price to Book ratio of 8.11.

Based on the recent corporate insider activity of 50 insiders, corporate insider sentiment is negative on the stock. Earlier this month, Wayne R. Wilson, the CFO of MBUU sold 14,088 shares for a total of $737,366.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.

Malibu Boats, Inc. is a holding company, which engages in the design, manufacture, and marketing of recreational powerboats, including performance sport boats, sterndrive, and outboard boats under the Malibu, Axis, and Cobalt brands. It operates through the following segments: Malibu US, Malibu Australia, and Cobalt.

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