MarineMax on DA Davidson ‘Stampede’ list for regulatory risk

DA Davidson keeps a Buy rating and $34 price target on MarineMax 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. The biggest implication from this regulation on the company would be the deterioration of used boat values as it would impact the utility of a boat owner’s asset for the bulk of the year, the analyst tells investors in a research note.