Roth MKM upgraded Vista Outdoor to Buy from Neutral with a $38 price target. The firm’s base case scenario assumes that Vista should eventually sell its ammo segment to CSG, leaving a stand-alone outdoor products business with a good set-up where the owners get $12.90/share cash and a share of Revelyst with $7/share in cash, implying $13/share valuation for a company that has EPS potential of $2 per share, the analyst tells investors in a research note. The firm adds however that if the CSG deal gets scrapped, MNC Capital’s $37.50/share cash offer is also an “attractive in-the-money put option”.
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