Shares of American Outdoor Brands Corp. rallied 1.5% in morning trade Monday, after the parent of gun maker Smith & Wesson was upgraded at Wedbush Securities, citing the belief that an eventual return of gun buyers will create support for the stock. Analyst James Hardiman raise his rating to outperform, after being at neutral since January 2016, and boosted this stock price target by 22% to $19.50 from $16.00. The stock has now run up 15% since it closed at a 2 1/2-year low on Sept. 11, in the wake ofdisappointing fiscal first-quarter results. Hardiman said a survey of gun owners shows that while there is little urgency to buy more guns, they are “far from satisfied” with their current level of ownership. and plan to make even higher levels of purchases over the next year. The stock has plunged 36% over the past three months, while shares of rival gun maker Sturm Ruger & Co. has tumbled 23% and the S&P 500 has gained 2.6%.
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