UPDATE: Piper Jaffray Lowers Price Target on Cabela's, Industrywide Store Growth Adds Risk to Company

In a report published on Tuesday Piper Jaffray analyst, Sean P. Naughton, lowered the PT on

from $73 to $69 and reiterated a Neutral rating on the company. In the report Piper Jaffray commented, "We are reducing our Q2 revenue estimates due to slowing NICS checks, unfavorable weather and Q2 product mix. However, we are maintaining our Q2 EPS of $0.60 as merchandise margin should benefit from the normalizing mix and the company has sufficient expense levers to deliver strong EPS growth this quarter, in our opinion. Longer-term, we are taking a cautious view of the hunt/fish industry as our analysis of public and private retailers indicates most are growing their store base at a low double-digit rate, a rate we do not believe is sustainable on an industrywide basis given hunting and fishing participation rates have been in a 30-year decline. As such, we believe the hunt/fish industry could become over-stored, thus potentially compromising productivity and profitability." Cabela's opened on Wednesday at $68.20.