Arctic Cat slides on CEO switch
Arctic Cat’s CEO, Claude Jordan, stepped down last week and his predecessor Christopher Twomey stepped back in as interim CEO while the board searches for a new long-term CEO. The announcement surprised analysts who follow the Plymouth-based maker of ATVs and snowmobiles.
Robert W. Baird analyst Craig Kennison told the Star Tribune that the move was unexpected: “Billed as a mutual decision, the development is a disappointment for investors that see value in the Arctic Cat franchise.”
That sentiment may explain why the stock finished down 8.8 percent when the news broke. “We expect the stock to struggle until a succession plan is resolved,” Kennison added.
new Target team impresses
J.P. Morgan analyst Christopher Horvers came away from a recent meeting impressed by Target’s interim management team, which includes John Mulligan, Target’s interim president and CEO; Kathee Tesija, executive vice president of merchandising; and Casey Carl, president of multichannel.
“Overall we walked away believing that the team has shifted to a ‘what needs to be fixed’ perspective from ‘look at all we’re doing right’ point of view, representing refreshing and needed change.” Horvers wrote.
Back to ‘buy’ at Best Buy
Analysts at Makor Capital are once again recommending a “buy” on Best Buy Co. Inc. Makor put a sell on the company in May 2013 when shares were around $26. Best Buy stock would subsequently make a run to $43 per share but eventually fell back to around $23.
“At the current levels [around $28], and given BBY’s much improved fundamentals, we re-initiate a buy rating with a target of $40.”