Texas Capital Downgrades Brunswick on Valuation Grounds, Shares Fall 2%

Core Viewpoint - Brunswick was downgraded to Hold from Buy by Texas Capital Securities, with a raised price target of $90 from $84, reflecting a more fully valued stock in light of improving long-term outlook in the recreational marine industry [1] Group 1: Downgrade and Valuation - The downgrade was driven by valuation considerations rather than changes in the company's fundamentals [2] - Texas Capital's revenue and EBITDA estimates for 2026 and 2027 remain above consensus, indicating confidence in long-term recovery [2] Group 2: Future Outlook - The firm is waiting for a more attractive entry point or clearer evidence of accelerating demand before becoming more constructive on the stock [3] - The increased price target reflects a higher multiple applied to unchanged 2027 EBITDA estimates [3]