Smith & Wesson Brands price target lowered to $12 from $17 at Craig-Hallum

Craig-Hallum analyst Steve Dyer lowered the firm’s price target on Smith & Wesson Brands to $12 from $17 and keeps a Hold rating on the shares. The analyst notes demand has softened meaningfully after COVID and civil unrest, but the distribution channel appears to be a bit better-managed than previous cycles. Channel inventory rationalization in Q2 leaves inventory lower than it was in Q1, which should provide some pricing support into the important holiday season assuming rational promotional activity by competitors, Dyer adds. While the analyst doesn’t believe there is much downside to the stock, he doesn’t expect a catalyst in the near-term either.