UPDATE: Monness Crespi Hardt Reiterates Buy Rating, Raises PT on Cabela's on 4Q12 EPS
In a report published Friday, Monness Crespi Hardt reiterated its Buy rating on Cabela's (NYSE: CAB), and raised its price target from $55.00 to $59.00.
Monness Crespi Hardt noted, “Excluding 1x items, Cabela's reported 4Q12 EPS of $1.25. The loan loss provision decreased $0.2 million from last quarter and was neutral to 4Q EPS this year vs. a $0.02 benefit last year. Total sales increased 15.2% including +7% for financial services, +26% for retail and +2% for direct. The company's operating margin improved 10 bps to 12.1% as 70 bps of SG&A leverage was partially offset by a 20 bps decline in merchandise margin and a lower mix of financial services revenue. A mix shift toward firearms had a negative 80 bps impact on merchandise margin. Merchandise margins improved in all categories. SG&A grew 12.6% in 4Q12 as the company invested in additional marketing spend.”
Cabela's closed on Thursday at $48.11.
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