After Malibu Boats agreed to buy Cobalt Boats, SunTrust analyst Michael Swartz notes that investors may have questions about the deal since the sterndrive segment in which Cobalt competes is about 15% the size of pre-recession levels. Nonetheless, the analyst says that Cobalt "is a premium brand that holds a leading position in many of the segments in which it operates" and is one of the few brands in the market that has grown in the last three to five years. The analyst adds that the deal increases Malibu's presence "in key freshwater markets" and should enable it to "better leverage its vertical manufacturing initiatives." He keeps a Buy rating on the stock.