Craig-Hallum upgrades Smith & Wesson on ‘optimal position’ into election

Craig-Hallum upgraded Smith & Wesson Brands to Buy from Hold with a price target of $18, up from $14. The company continues its “deft execution” and is entering the election cycle in an “optimal position, with lean channel inventory, strong demand tailwinds and improving operating leverage,” the analyst tells investors in a research note. The firm says this, combined with most of its recent relocation capital expenditures behind it, should allow the company to generate substantial free cash flow. Hallum believes “equity investors here are in a very good spot” even if this election doesn’t prove to drive the same magnitude of demand as the last.