Brunswick Corporation (BC) announced that its business division Freedom Boat Club has acquired Spain-based Fanautic Club for an undisclosed amount.
Shares of Brunswick Corporation have jumped 52% over the past year. The company designs, manufactures, and markets a wide variety of recreation products, including marine engines, boats, and fitness equipment.
Freedom Boat Club is one of the oldest and largest boat clubs in the U.S. and serves over 40,000 members at 289 locations across 33 American states, Canada, and Europe.
The addition of Fanautic Club is expected to strengthen Freedom Boat Club’s footprint and growth potential in Europe. Furthermore, it will result in Freedom’s entry into Spain, the third European country after France and the UK. (See Brunswick stock charts on TipRanks)
The Vice-President of Boating Services (EMEA) at Brunswick, Jason Worthy, said, “Spain is one of the great boating destinations in Europe and we are thrilled for the opportunity to serve the members of Fanautic Club and continue our growth across coastal Spain.”
He added, “Expanding our presence across tier-one European markets is consistent with the aggressive shared-access growth plans that our leadership team outlined during Brunswick’s recent Investor Day presentation.”
B.Riley Financial analyst Eric Wold recently maintained a Buy rating on the stock with a price target of $135 (41.9% upside potential).
Wold believes that the recently announced acquisition of Navico for $1.05B will “meaningfully boost” the company’s market share in the global parts and accessories space, lower the cyclical impacts on Brunswick’s financials, and enhance its long-term outlook.
Overall, the stock has a Moderate Buy consensus rating based on 12 Buys, 2 Holds, and 1 Sell. The average Brunswick price target of $116.36 implies 22.3% upside potential from current levels.
Brunswick scores a 9 out of 10 on TipRanks’ Smart Score rating system. This indicates that the stock has strong potential to outperform market expectations.