Key Takeaways:
- Sturm, Ruger & Co. anticipates significant restructuring expenses, potentially affecting short-term profitability.
- Analysts project a price target of $41.00, suggesting an upside potential of 8.85% from current levels.
- The stock is rated as "Outperform," with a GF Value estimation indicating a 23.4% potential upside.
Sturm, Ruger & Co. (NYSE: RGR) is facing a noteworthy challenge as the company projects restructuring costs amounting to $15 million to $20 million through 2025. This financial burden is anticipated to impact profitability in the near term. The company's CEO, Todd Seyfert, has outlined that these efforts, which include workforce reductions and product realignment, are strategic moves designed to foster long-term growth. However, investors should be aware of the immediate financial implications.
Wall Street Analysts Forecast
According to data aggregated from one analyst, Sturm Ruger & Co Inc (RGR, Financial) has a one-year price target set at $41.00. This target implies a potential upside of 8.85% from its current trading price of $37.67. Investors seeking more granular details and projections can access these on the Sturm Ruger & Co Inc (RGR) Forecast page.
Consensus Analyst Recommendation
The consensus from brokerage firms rates Sturm Ruger & Co Inc (RGR, Financial) at 2.0, categorizing the stock as "Outperform." The rating system is structured on a scale where 1 represents a Strong Buy, and 5 indicates a Sell. This suggests a positive outlook from analysts regarding the company's performance despite the restructuring expenses.
GF Value Estimation
GuruFocus's calculated GF Value for Sturm Ruger & Co Inc (RGR, Financial) is estimated at $46.48 within a year. This estimation signals a significant upside potential of 23.4% from its present price of $37.67. The GF Value is derived from historical trading multiples and forecasts of future business performance. For a comprehensive analysis, investors can refer to the Sturm Ruger & Co Inc (RGR) Summary page.
