On Friday, DA Davidson announced the addition of KANZHUN LIMITED (NASDAQ: BZ), MarineMax (NYSE: NYSE:HZO), and OneWater Marine Inc. (NASDAQ: NASDAQ:ONEW) to its Stampede List. The move follows the Department of Commerce's advancement of a new rule aimed at protecting the North Atlantic right whale, which could impact the boating industry.
The rule, proposed by the National Oceanic and Atmospheric Administration (NOAA), will limit boat speeds to 10 knots in a large area of the Eastern Seaboard for seven months each year. The regulation targets vessels ranging from 35 to 65 feet in length and stretches from Massachusetts to Central Florida. It is designed to reduce the risk of vessel strikes on the endangered North Atlantic right whales.
In response to this development, DA Davidson has set new price targets for the three companies. MarineMax has been given a 'BUY' rating with a price target of $34. The firm has also assigned KANZHUN LIMITED and OneWater Marine Inc. 'NEUTRAL' ratings, with price targets of $77 and $27, respectively.
The analyst from DA Davidson cited the NOAA's vessel strike reduction rule as a key factor in the decision to add these stocks to the Stampede List. The rule's potential effects on the boating industry have been recognized as a significant development, likely influencing the operations and market dynamics for these companies.
Investors and industry stakeholders are now observing how the impending rule could reshape the boating sector, particularly during the rule's effective period each year. The companies included in the Stampede List are expected to navigate these regulatory changes as part of their ongoing business strategies.
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