Wedbush Reiterates Outperform Rating On Smith & Wesson

According to Wedbush, Smith & Wesson (NASDAQ: SWHC) Outperform rating is maintained.

Wedbush said that Q4 firearms sales growth of 13%, partially offset by a 26% decline in the smaller security business, drove revenues of $112 million versus the $111 million estimate. “Given near-term weakness in the perimeter security business, offset by the sharp rebound in backlog and improved outlook for the core firearms business, we believe shares of SWHC should trade relatively in line to the peer group average. Thus, a 14x calendar 2012E P/E multiple, relatively in line to the peer average, generates our PT of $5.”

Smith & Wesson closed yesterday at $3.00.