Vista Outdoor: Still A Buy, Still Focused on Shooting Sports

We're reiterating our Buy rating and $43 target price on Vista Outdoor. We continue to like the company's growth strategy and approve of the diversification efforts currently unfolding. Still, don’t ignore the company’s strong Shooting Sports business. Vista’s new Savage modern sporting rifles (MSRs) and the recent introduction of fresh Savage rifles in the hot 6.5 Creedmoor caliber will be especially popular with self-defense buyers and target shooters. Savage’s lineup needed more guns built for today’s shooting preferences, and we’re pleased with the new designs. Younger shooters are increasingly drawn to MSRs and target shooting, so Savage has a good opportunity to build brand loyalty with these rifles. The likelihood of additional acquisitions for Vista’s Outdoor Products segment will keep revenue in that unit climbing, too. Overall, Vista Outdoor has a profitable future ahead.