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

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. 

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