Credit Suisse Reiterates Outperform On Camping World After Gander Mountain Acquisition

Credit Suisse is confident that Camping World Holdings Inc CWH will able to grow its market share in the fragmented RV sector; as a result, the firm is reinstating coverage and reiterating an Outperform on the company.

“CWH offers the benefits of recurring profit streams and less e-commerce risks, providing a level of protection from the disruption themes plaguing much of retail,” said Credit Suisse analyst Seth Sigman.

The recent acquisition of 70 Gander Mountain stores conservatively shows a $0.47 gross contribution to Camping World's EPS, according to Credit Suisse. As much as $9 could be added to Camping World shares by the purchase, assuming a 10 percent lift in sales productivity from the acquired stores, Sigman said.

For 2017, Credit Suisse has raised its EPS estimates from $1.81 to $1.83. For 2018 the EPS was raised from $2.10 to $2.20. 

3 Catalysts To Drive Camping World Higher

1. EPS upside from Gander Mountain.
2. Support from demographic drivers.
3. Attractive valuation relative to growth peers.

Credit Suisse maintains a $36 price target on Camping World. 

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