UPDATE: D.A. Davidson Upgrades Cabela's

In a note published Friday morning, D.A. Davidson analyst Andrew Burns upgraded shares of Cabela's (NYSE: CAB) from Neutral to Buy and maintained a $72 price target.

Burns noted the company reiterated 2014 EPS guidance and believes that this highlights the company's competitive strength pointing to new-store performance and "excellent" WFB results, specifically.

Looking ahead, Burns is expecting firearms and ammunition to stabilize, despite recent weakness in the categories. He wrote, "Even though the exact timing of firearms stabilization is unknown, we are confident the monthly sequential improvement in comps noted by management can continue into the fourth quarter."

Burns added, "We believe sentiment will improve as firearm sales trends stabilize and shares can appreciate with the resumption of earnings growth."