Brunswick (BC) Stock Forecast & Price Target

Brunswick has demonstrated resilience in the marine recreation industry, maintaining approximately 48% market share in the outboard sector and exceeding 70% in the more profitable 350 horsepower and above category, contributing to expected average selling price (ASP) growth through annual price increases. The company is also benefiting from a stable aftermarket business, alongside a sustained focus on its higher-margin parts and accessories segment, which has proven to cushion volatility amid changing economic conditions. With a strong financial position featuring $284 million in cash and an expected free cash flow of over $350 million for FY24, Brunswick is strategically poised to capitalize on a potential retail recovery in the recreational boating market.

Brunswick's outlook has been negatively impacted by an anticipated significant decline in sales and earnings, with FY24 EPS estimates revised down to $5.22 from $7.20 and a consolidated sales forecast reduced by 17% to a range of $5.2 billion to $5.4 billion. The company is experiencing ongoing challenges within the marine market, evidenced by a 20% year-over-year drop in sales to $1.27 billion, along with lower demand for outboard engines contributing to a 6% decline in retail units. Furthermore, management has adjusted expectations for powerboat sales, now projecting a 10% decline, signaling a tough market landscape that could hinder recovery efforts moving into FY25.