Wunderlich Securities Sees Favorable Feedback From Channel Checks For Performance Sports Group

In a report published Wednesday, Wunderlich Securities analyst Rommel Dionisio reiterated a Buy rating and $24.00 price target on Performance Sports Group Ltd. (NYSE: PSG).

In the report, Wunderlich Securities noted, "Our early season channel checks of about 60 U.S. sporting goods retailers appear to confirm strong initial retail sales of the eagerly anticipated new Easton bats featuring the TORQ handle. Given the $100 price premium of these handles vs. conventional bats, such popularity of these new models could not only drive upside to top-line forecasts, but also margin expansion as well.

"In addition, late-season contribution from the new Bauer Vapor 1X stick in hockey could also drive slight near-term upside, given favorable retailer feedback on this introduction as well. We maintain our Buy rating on Performance Sports Group (PSG) and price target of $24, derived using a 10.8x EV/2015E EBITDA multiple, which applies the trailing-year peer group average multiple on current-year estimated earnings."

Performance Sports Group closed on Tuesday at $20.55.