Smith & Wesson's stock price target more than doubled at Wedbush, citing 'unprecedented' demand for guns

Shares of Smith & Wesson Brands Inc. /zigman2/quotes/202273249/composite SWBI +7.89% slipped 1.5% in morning trading Thursday, but outperformed the 3.4% selloff in the S&P 500 /zigman2/quotes/210599714/realtime SPX +0.72% , after Wedbush analyst James Hardiman more than doubled his price target. The gun maker's stock has now declined 3.0% since closing Tuesday at the highest price since September 2017. Hardiman reiterated his neutral rating he's had on Smith & Wesson the past 15 months, but boosted his stock price target to $18.00, which is 9.9% above current levels, from $8.50. "Our dealer contacts have seen an unprecedented level of demand, driven initially by nationwide COVID lockdowns, then by stimulus checks and most recently by civil unrest," Hardiman wrote in a note to clients. He said recent checks suggest demand has increased in early June, as calls for defunding police forces has led consumer to buy guns for personal protection, including a "significant uptick" in first-time buyers. The stock has soared 57.1% over the past month, while the S&P 500 has gained 5.2%. Fellow gun maker Sturm Ruger & Co.'s stock /zigman2/quotes/200036418/composite RGR +3.97% has rallied 16.4% the past month, while shares of ammunition and outdoor sports product maker Vista Outdoor Inc. /zigman2/quotes/205852373/composite VSTO +6.36% have run up 45.3%.