Shares of Brunswick Corp closed at an all-time high of US$64.51 on May 30 amid industry reports that recreational boating sales are at a 10-year high.
In a report prepared by analytics research company MTA, the 2.99% increase came among heavy trading of 949,768 shares, up 14.16% above average. Brunswick stock is up a total of 14.83% since May 30, 2017 and has outperformed the S&P500 by more than 2%. MTA reports a US$69.03 target price, or 7% above the record close.
The US boating market enters the summer season on news of a 5% increase in new powerboat sales during 2017, reaching 262,000, the highest in a decade. Moreover, total marine expenditures – new boats, engines, trailer accessories and service – reached an all-time high of US$39bn last year, according to the National Marine Manufacturers Association (NMMA).
The industry group reports demand is up in nearly all powerboat segments, including small sterndrive cruisers (22ft-32ft), which have lagged since the recession, accounting for 52% of all sterndrive boat sales. Outboard boat sales were up 5% in 2017 and represent 85% of new powerboat sales.