Brunswick (NYSE: BC) was downgraded to Hold from Buy by Texas Capital Securities, which raised its price target to $90 from $84. Shares slipped nearly 2% intraday on Monday.
The firm said it remained constructive on Brunswick’s long-term positioning as a key supplier to the recreational marine industry during an eventual new-boat demand recovery. However, Texas Capital said the stock’s valuation now more fully reflected that improving outlook.
The analyst emphasized that the downgrade was purely valuation-driven rather than a change in the company’s fundamentals. Texas Capital noted that its 2026 and 2027 revenue and EBITDA estimates remained above consensus and that it had already been applying a forward multiple to 2027 EBITDA, signaling confidence in the longer-term recovery.
Given the current valuation, the firm said it would wait for either a more attractive entry point or clearer evidence of accelerating demand before becoming more constructive. The higher price target reflected an increased multiple applied to unchanged 2027 EBITDA estimates.
