This spinoff will appeal to big investors

Article Excerpt

Following the 2018 school shooting in Parkland, Florida, some retailers stopped ordering Vista Outdoor’s products because of its ownership of an ammunitions manufacturer. That’s partly why Vista is now spinning off this business as a separate firm. Despite the stigma, the ammunition division’s high order backlog cuts its risk. More importantly, the separation will benefit Vista’s remaining outdoor equipment business. In fact, it should further boost sales as the ongoing pandemic continues to spur greater interest in camping and golf. VISTA OUTDOOR INC. $34 is a spinoff buy. The company (New York symbol VSTO; Consumer sector; Shares outstanding: 56.5 million; Market cap: $1.9 billion; No dividends paid; Takeover Target Rating: Medium; www.vistaoutdoor.com) is a leading maker of consumer products for the outdoor sports and recreation markets. Its 39 brands include Federal Premium ammunition, Savage rifles, Bushnell binoculars and riflescopes, Bell and Giro cycling helmets, and ForeSight golf simulators. Vista Outdoor was spun off from Alliant Techsystems Inc.’s (former New York symbol ATK) sporting group in February 2015. In its…

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