Smith & Wesson Holding initiated with "strong buy"

09/25/07 - Wedbush Morgan Securities

NEW YORK, September 25 (newratings.com) - Analysts at Wedbush Morgan initiate coverage of Smith & Wesson Holding Corp (SWHC) with a "strong buy" rating. The 12-month target price is set to $26.

In a research note published this morning, the analysts mention that the company has been gaining share in the pistols market, with the highly successful launch of the landmark M&P series of polymer pistols in January last year. The robust momentum in Smith & Wesson Holding’s pistol sales is expected to continue in the forthcoming years, the analysts say. The company has launched several products to expand its footprint in the $1.1 billion long-gun industry, which it entered into early last year, Wedbush Morgan adds. Smith & Wesson Holding is the frontrunner to win a US military contract, which could be worth $300-$500 million over the next several years, according to the analysts.