DA Davidson came out positive Tuesday on two recreational marine stocks ahead of earnings season for the sector.

Company initiated coverage of Brunswick Corporation (BEFORE CHRIST -4.4%) and MarineMax Inc. (HZO -4.5%) with a buy rating.

Analyst Brandon Rolle said the BC investment thesis is driven by the belief that the company is well positioned to benefit from the influx of new buyers entering the boat industry over the past two years with its strong presence in the boats, engines, P&A segments of the industry. “We expect BC to exceed investors’ earnings expectations, with a healthy balance sheet supporting strong cash flow generation and shareholder returns,” Rolle updated.

Meanwhile, MarineMax (NYSE: HZO) is viewed favorably as the boating industry is in a much better position than other leisure industries, with strong demand and a tight inventory environment allowing HZO to exceed investors’ earnings expectations and margins. Rolle noted that HTZ also has a strong cash position with its healthy balance sheet supporting strong revenue growth, cash flow generation and shareholder returns.

DA Davidson assigned a price target of $96 to BC to represent 28% upside potential and a PT of $48 to HZO to represent 31% upside potential.

Compare the rating marks on BC and HZO to those of their peers.