Craig-Hallum analyst Steve Dyer raised his price target for American Outdoor Brands to $12 from $10 saying that while the company's planned separation has "pros and cons," the shares are "materially undervalued." The pros include isolating its firearms liability and negative public sentiment to Smith & Wesson, and the cons include lost synergies, Dyer tells investors in a research note. The analyst, however, thinks value could be unlocked as American Outdoor undergoes the spin-off of its Outdoor Products segment into a separate public company. In addition, signs of stabilization in the firearm demand environment brings confidence that estimate cuts are over and the stock can re-rate higher, says the analyst, who reiterates a Buy rating on the shares.