Recreational boats and yachts retailer MarineMax (HZO) has acquired Nisswa Marine to strengthen its storage and service offerings. The transaction expands MarineMax’s presence in the Midwest and is expected to be accretive to earnings in the first full year.
Located in Nisswa, Minn., Nisswa Marine offers storage for almost 1,000 boats annually. The company generated about $35 million in revenues in 2020.
Though the terms of the deal remain undisclosed, Nisswa Marine’s leadership team will continue to operate the business. (See MarineMax stock chart on TipRanks)
CEO and President of MarineMax, W. Brett McGill said, “This strategic acquisition further enhances our ability to serve the Minnesota area, while expanding our margins through their expansive storage operation.”
On June 21, B.Riley Financial analyst Eric Wold upgraded the stock’s rating to Buy from Hold and maintained the price target at $57. The price target implies upside potential of 16.9% from current levels.
Wold said, “We believe the combination of stronger-than-expected demand and the recent acquisition of Cruisers Yachts provides an upside bias to estimates in the coming quarters (and especially for the June quarter).”
“In addition, the stronger cash flow and deleveraged balance sheet (along with the potential to take capital out of the real estate holdings) open the door for additional M&A opportunities to drive growth and diversify revenue contributions,” the analyst added.
Based on 4 Buys and 1 Hold, the stock has a Strong Buy consensus rating. The average MarineMax price target of $57.50 implies 17.9% upside potential from current levels.
TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on MarineMax, with 16.6% of investors maintaining portfolios on TipRanks increasing their exposure to HZO stock over the past 30 days.
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