Brunswick on DA Davidson ‘Stampede’ list for regulatory risk

DA Davidson keeps a Neutral rating and $77 price target on Brunswick while naming the stock to the firm’s “Stampede” list for its potential Disruptive Regulatory Risk. The firm is citing the Department of Commerce having advanced the North Atlantic right whale Vessel Strike Reduction Rule to the Office of Management and Budget, with the rule proposed by the NOAA that restricts boats 35′-65′ to a speed of 10 knots – roughly 11 mph- along much of the Eastern Seaboard for 7 months out of the year. This regulation would be a major negative for the company’s Propulsion business, given their higher-HP engines are the highest-margin product in the segment, the analyst tells investors in a research note.