A financial analyst has lowered his rating on Brunswick Corp.’s stock because of concerns about sluggish retail sales in the marine industry.
Ed Aaron, vice president of equity research at RBC Capital Markets, said last week in a statement that retail activity appears below expectations. The investment company projects dealers are planning conservative orders for 2007 product lines.
Expectations about the proposed sale of Brunswick New Technology division also may have been too aggressive, according to Aaron. The transaction will likely be net dilutive, he said.
However, RBC says Brunswick’s strategy in the long-term will make the company more profitable once the business cycle returns to normal.
Brunswick shares were $32.22, down 80 cents, in trading.