INTERNATIONAL BUSINESS TIMES NEWSLETTER SIGNUP My account Log Out Sep 09, 5:14 PM EDT World U.S. Economy & Markets Companies Technology Digital Life Culture Sports Crypto Opinion NEWSLETTER My account Log Out US Edition World U.
S. Economy & Markets Companies Technology Digital Life Culture Sports Crypto Opinion Listings & More Spotlight Glossary SMB Forum Glossary K-Wave CEO Spotlight Editions Australia Edition India Edition International Edition Singapore Edition United Kingdom United States NEWSLETTER Follow Us Editions Australia Edition India Edition International Edition Singapore Edition United Kingdom United States Companies Boat Dealer MarineMax Sees Shares Surge After Citi Puts A Buy On Stock Analyst James Hardiman said company could benefit from an interest rate cut By Bruce Golding Published 09/09/24 AT 5:14 PM EDT Share on Facebook Share on Twitter Share on LinkedIn Share on Reddit Share on Flipboard Share on Pocket Yachts are docked at the Miami Beach Marina on Sept. 7, 2017, in Miami Beach, Florida.
Mark Wilson/Getty Images Shares in boat dealer MarineMax jumped 6.5% Monday morning after a Citi analyst upgraded the stock from "neutral" to "buy" and raised his target price to $44, up 10%. James Hardiman told clients that the company (NYSE:HZO) could benefit when the Federal Reserve cuts interest rates , CNBC reported.
That's because the cost of financing pushes up the total price of boats and other big-ticket items, CNBC said. "At the most basic level, HZO is a strong play on the Fed pivot," Hardiman wrote in a Monday note. "Boat affordability has been hit hard (maybe hardest) by the higher for longer rate environment and stands to benefit mightily in a soft-landing scenario.
" The Fed is widely expected to cut its benchmark interest rate by at least a 0.25 percentage point, and possibly by a 0.5 percentage point, after the Federal Open Markets Committee meets for two days next week in Washington, D.
C. The benchmark rate has been 5.25% to 5.
5% since July 2023. Hardiman also said that there were opportunities for MarineMax to monetize marina real estate and that it could face investor pressure to do so. "This story embodies both substantial upside and limited downside, and is worth a second look for investors looking for sizable risk-adjusted returns," Hardiman wrote.
Clearwater, Florida-based MarineMax bills itself as "the world's largest lifestyle retailer of recreational boats and yachts," with more than 125 locations, including over 75 dealerships and 65 marina and storage facilities. The company also operates MarineMax Vacations in Tortola, British Virgin Islands, where it offers luxury charter trips. Its shares opened at $31.
11 Monday, up from Friday's close of $29.04, and closed at $30.30, up more than 4.
3% for the day. Read more Wall Street Ends Week On Sour Note On Job Report, Drop In Tech Stocks Dow Hits Yet Another Record High Dow Reaches Record High While Tech Stocks Weigh On Recovery © Copyright IBTimes 2024. All rights reserved.
Join the Discussion MOST READ IN Companies 1 Norfolk Southern CEO Alan Shaw Accused Of Inappropriate Workplace Relationship: Report 2 Boeing's Troubled Starliner Space Capsule Is Back On Earth — Without Astronauts 3 Nearly 1.5 Million Ram Pickup Trucks Being Recalled To Fix Software Glitch Linked To Crash Risk 4 Eli Lilly Names New CFO Amid Weight-loss Drug Expansion Plan 5 Bankrupt Big Lots Plans To Sell Company To Nexus Capital NEWS World U.S.
Economy & Markets Companies Technology Digital Life Culture Sports Opinion Featured Social Capital Glossary SMB Forum Spotlight Crypto CEO Spotlight ABOUT About Us Contact us Advertise with us Terms & Conditions Privacy Policy Cookie Policy Editions United States Australia Brazil Colombia France Germany Indonesia India International Italy Editions Japan Nigeria Singapore South Africa South Korea Spain Mexico United Kingdom FOLLOW US Facebook Twitter LinkedIn Newsletter © Copyright 2024 IBTimes LLC. All Rights Reserved..
