Citigroup Downgrades Brunswick

Analyst Liz Osur believes there is limited opportunity for the recreational boat maker to rise about peak earnings per share expectations

Citigroup downgrades Brunswick Corp (BC ) to hold from buy.

Analyst Liz Osur says the stock yesterday closed at just below $49. She says the key message is she thinks Brunswick already reflects most of peak earnings per share expectations, and there appears to be limited opportunity for a rise in peak forecasts.

She also cites a potential risk to near-term earnings per share due to dealer checks that indicate high fuel prices are starting to impact consumer demand and forecasts for rising materials costs.

Further, Osur cites fundamental business concerns, including soft demand for smaller boats. For now, she keeps her $3.30 2005 earnings per share and her $4.05 2006 earnings per share estimates, but cuts her $54 target to $51.

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