Credit Suisse Reiterates Outperform On Camping World After Gander Mountain Acquisition
Credit Suisse is confident that Camping World Holdings Inc (NYSE: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
- EPS upside from Gander Mountain.
- Support from demographic drivers.
- Attractive valuation relative to growth peers.
Credit Suisse maintains a $36 price target on Camping World.
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