More Federal Reserve rate cuts could inspire some shoppers to get their sea legs — and that’s good news for Brunswick , according to Jefferies. Analyst Randal Konik on Tuesday upgraded the Illinois-based boat maker to buy from hold, lifting his price target to a Wall Street high of $115 from $65, suggesting 52% upside from Monday’s close. Central to Konik’s bullish outlook: If the Fed further lowers interest rates in 2026, looser borrowing costs could juice consumer interest in big-ticket purchases such as boats. The Fed lowered the key overnight borrowing rate three times in the second half of 2025, but there’s division within the central bank on what to do next with monetary policy. Brunswick’s business is highly correlated growth in consumer spending, Konik noted. He pointed to Euromonitor data showing consumer expenditures should grow at about a 6% rate in 2026, pointing to a a likely recovery in discretionary spending on large purchases. “Boat pipelines should normalize from historically lean channel levels while the post Covid-19 demand hangover ends, and overall unit demand rebounds to historical average levels,” Konik wrote to clients. “Fed rate cuts should also lower financing costs for both dealers and consumers.” Konik said his 2027 estimates for earnings per share are more than 50% above the consensus on Wall Street, driven by accelerating revenue and fatter profit margins. Brunswick is entering 2026 with a “structurally improved” business model, he added. Brunswick shares jumped more than 6% early Tuesday following the upgrade. Shares have rallied more than 22% over the past 12 months, outperforming the 16% rally in the S & P 500.
