On Thursday, Roth/MKM maintained its Neutral rating on Vista Outdoor (NYSE:VSTO) with a steady price target of $31.00. The firm's stance comes after a fireside chat with Vista Outdoor's management at the ROTH Conference earlier in the week. The discussion revealed several key points about the company's current operations and future plans.
The company is reportedly on track with its plans to separate its ammunition and outdoor products segments. Post-separation, the balance sheet of Revelyst—a name associated with one of Vista's segments—appears healthier than what was initially indicated. This information suggests a positive outlook for the company's financial health following the planned division.
Vista Outdoor is also expected to announce more small portfolio actions by the upcoming investor day on May 29, 2024. These actions could involve adjustments to the company's product lineup or strategic initiatives aimed at optimizing its portfolio. Additionally, the company's GEAR UP cost savings initiatives are showing promise, indicating potential improvements in operational efficiency.
The firm highlighted the disciplined approach of Eric Nyman, related to Revelyst's operations, capital allocation, and portfolio action. While the overall rating remains unchanged, the analyst's commentary suggests an appreciation for the management's strategic direction.
The price target of $31.00 remains unchanged following the analyst's assessment. This target reflects the firm's current valuation of Vista Outdoor's stock.
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