+ 2.27
+ 0.66%
+ 0.48
+ 0.14%
+ 1.61
+ 0.38%

Credit Suisse Reiterates Outperform On Camping World After Gander Mountain Acquisition

June 2, 2017 3:14 pm
Share to Linkedin Share to Twitter Share to Facebook Share to Print License More

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

    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. 

Related Links:

What Gander Mountain Bankruptcy Means For Dicks Sporting Goods, Sportsman's Warehouse

4 Reasons This Wall Street Analyst Likes Camping World 

For the latest in financial news, exclusive stories, memes follow Benzinga on Twitter, Facebook & Instagram. For the best interviews, stock market talk & videos, subscribe to our YouTube channel.

Related Articles

Camping World Breaks Down After Q2 Earnings Miss: Wall Street Reacts

KeyBanc Downgrades Camping World, Asks 'Where's The Profit?'

Camping World Analyst Downgrades RV Dealer After 'Challenging' Q1

How The RV Industry Plays A Role In Helping With Harvey