Zacks Investment Research upgraded shares of Cabela's Inc. (CAB) from NEUTRAL to OUTPERFORM on April 09, 2013, with a target price of $66.00.
Cabela's next-generation store format, multi-channel strategy and seasonal product assortments enable it to boost stores productivity and sales per square foot while lowering its labor costs. Moreover, the company s upbeat outlook, strong balance sheet, feasible strategy and operating efficiencies position it well to drive long-term profitability. Cabela s earlier stated that it expects first-quarter 2013 comparable-store sales to rise in the high-teens rate. Moreover, direct revenues are expected to increase in a low to mid-teens rate, which is a big positive as its direct business has long been grappling with declining revenue trends. Going forward, Cabela s aims to capitalize on the under-penetrated markets through its smaller outpost stores. It had projected earnings per share to surpass the analysts expectations. Further, Cabela's CLUB Visa program continues to register strong growth, which is encouraging. Consequently, we upgrade our recommendation on Cabela's to Outperform.
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