BUZZ-Performance Sports Group Ltd: Bofa Merrill upgrades to "buy"

Mon Apr 13, 2015 2:30pm EDT
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** Sports equipment and apparel company's shares up 4.8 pct at $19.62

** BofA Merrill Lynch raises rating on stock to "buy" from "neutral", raises price target to $22 from $20

** Company positioned to gain share in hockey and baseball brands, holds long-term margin opportunity, Bofa Merrill analysts write

** "We believe PSG has the opportunity to improve its gross margin to 39 pct+ over the next five years, driven by scale benefits on raw materials, distribution, sourcing and improving service levels to customers," the analysts write

** Of the 12 analysts covering stock, 10 have a "buy" or higher rating, two a "hold" rating; median price target is $22

** Up to Friday's close, stock had risen 20.8 pct since going public in June 2014; company expected to report Q3 results after the bell on Monday