Smith & Wesson: Initiation à Deux
Forward View is initiating formal coverage of Smith
& Wesson $SWHC with a $30 target price and a Buy rating. While Tuesday’s election
eliminated a long-term risk to Smith & Wesson (namely the person commonly
referred to as HRC), the associated panic gun-buying we had forecast won’t
happen. Happily for institutional investors, SWHC stock is suddenly on sale.
The firm’s fundamentals remain attractive, and the transition to an outdoor
brands holding company is just beginning. We recommend buying the dips, and
load up on shares if the stock touches $20. That price would be a perfect entry
point, but anything below $25 seems to be very promising. As our
President-elect would say, “Buy bigly!” And you can’t ignore bigly…
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