Shooting sports and outdoor products maker Vista Outdoor shares got rating boost to outperform from market perform by Cowen analyst Gautam Khanna. The analyst also hiked his share-price target on Vista shares to $33 from $29.
According to Khanna, President-elect Joe Biden's gun-control plans will likely increase demand for guns and ammunition. He also views Vista's current valuation as "compelling."
The analyst mentioned that an increase in ammunition demand reflects an influx of new shooters, versus stockpiling by longstanding ones. So, he thinks the trend should enhance Vista’s customer base.
Additionally, Khanna said that Vista’s prior challenges like portfolio quality and leverage have subsided.