8:39 a.m. Dec. 22, 2020
- By Tomi Kilgore
Vista Outdoor's stock shoots up toward a near 4-year high after Cowen analyst said it's time to buyShare of Vista Outdoor Inc. shot up 24.6% in midday trading Tuesday, putting them on track for the highest close since February 2017, after Cowen analyst Gautam Khanna turned bullish on the ammunition and shooting sports accessories maker, saying the current ammo demand upcycle is likely to last. Khanna raised his rating to outperform, after being at market perform for at least the last three years, and raised his price target to $33 from $29. Among the reasons Khanna believes ammo demand will continue, he believes President-elect Joe Biden's stricter gun control ambitions than current President Donald Trump's will provide an ammo/firearm "demand stimulant." Also, the recent ammo demand surge reflects and "an influx of new shooters," rather than just stockpiling by longstanding shooters, and the "cultural 'Armageddon' mentality may linger" given the recent surge in COVID-19 cases and civil unrest fears. The upbeat assessment of ammo demand was giving the shares of firearms makers a boost amid broader stock market weakness, with Smith & Wesson Brands Inc. rallying 2.5% and Sturm Ruger & Co. climbing 2.8%, while the S&P 500 fell 0.2%.
10:09 a.m. Nov. 4, 2020
- By Tomi Kilgore
Gun stocks tumble, as election uncertainties sparked worries of reduced demandShares of gun makers tumbled Wednesday, as a failed Democratic election sweep assuaged concerns over potential tighter regulations, which could have sparked further demand for firearms. Smith & Wesson Brands Inc.'s stock plunged 1.7% and Sturm, Ruger & Co.'s stock dropped 10.5%. Shares of ammunition and shooting sports accessories maker Vista Outdoor Inc. was knocked down 4.6%. The selloff bucked the surge in the broader stock market, in which the Dow Jones Industrial Average jumped 643 points, or 2.3%, and the S&P 500 hiked up 3.0%. , amid growing expectations that Former Vice President Joe Biden would be elected president and Democrats would take over a majority of the Senate. Analysts say that concerns over tighter gun regulation tends to be the primary driver of demand for firearms. Meanwhile, gun stocks had been soaring since March, as worries about social unrest stemming from the COVID-19 pandemic and calls to defund the police also fueled demand.
9:37 a.m. Sept. 11, 2020
- By Tomi Kilgore
Vista Outdoor's stock shoots up after B. Riley FBR analyst turns bullish, lifts target to imply a 55% upsideShares of Vista Outdoor Inc. ran up 6.6% in afternoon trading, after B. Riley FBR analyst Eric Wold turned bullish on the ammunition and outdoor gear maker, citing increased confidence that strengthened demand will last beyond the initial stages of the post-COVID-19 stay-at-home trend. Wold raised his rating to back to buy, after downgrading it to neutral on July 8. He raised his stock price target to $30, which is 55% above current levels, from $23. "At this point, we are increasingly confident that the spiking demand seen with both outdoor products and shooting sports/ammunition during the recent COVID-19 shutdowns, 'stay-at-home' environment, and civil unrest movements could prove more than fleeting and potentially create a new demand base heading into next year," Wold wrote in a note to clients. " Due to the combination of elevated firearms demand and the number of first-time gun buyers coming into the industry, our channel checks and management conversations indicate that ammo inventory out in the dealer channel remains extremely tight." The stock has rocketed 159.5% year to date, while the S&P 500 has edged up 2.7%.