DA Davidson Downgrades Nautilus (NLS) to Neutral

DA Davidson downgraded Nautilus (NYSE: NLS) from Buy to Neutral with a price target of $20.00 (from $24.00).

Analyst Andrew Burns writes "Risk that growth initiatives are partially offset by retail challenges and product maturity curves increase potential of sub-10% organic growth near-term. We estimate that approximately 55%-60% of NLS business across both segments is experiencing, and will continue to generate, strong organic growth. While the 10%-12% annual growth target remains attainable long-term, we now believe these headwinds could result in sub-10% growth in 2017."

Burns also reduces his 2017 EPS estimates from $1.24 to $1.12 and lowers his revenue estimate from $458.3M to $435.8M citing expectation of 'more muted growth trajectory in 2017."

For an analyst ratings summary and ratings history on Nautilus click here. For more ratings news on Nautilus click here.

Shares of Nautilus closed at $18.30 Friday.

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