J.P. Morgan Maintains Neutral Rating On Cabela's Inc., Lowers PT (CAB)

J.P. Morgan is out with its report on Cabela's Inc. (NYSE: CAB), maintaining Neutral and lowering its price target from $27 to $26.

"We are adjusting our EPS estimates and price target to reflect our updated thoughts post earnings," JP Morgan writes. "Cabela's stated priority is to improve merchandise margins 200-300 bps by the end of 2012 through vendor collaboration, enhanced pre-season planning, better and seasoned merch management, and price optimization. However, we believe the high end of this forecast remains a challenging hurdle. Also, given better-than-expected credit card performance throughout 2010, another year of strong performance is
principally included in forecasts."

Shares of CAB closed Friday at $26.51.