Dick's Sporting Goods (DKS): A Beneficiary Of The Cabela's/Bass Merger - UBS
Get daily under-the-radar research with StreetInsider.com's Stealth Growth Insider Get your 2-Wk Free Trial here.
UBS analyst, Michael Lasser, reiterated his Buy on Dick's Sporting Goods (NYSE: DKS) noting that the Cabela’s (NYSE: CAB) & Bass Pro merger is another sign of consolidation which puts the stronger players in the category in an even better position.
Dicks Sporting Goods has 1% of its stores in a 15 min trade area (5% in a 20 min trade area) that also contains both a Bass & a Cabelas. It's possible that none of these overlapping stores are closed as a result of the merger. Though, we calc. DKS could pick up 15 bps of comp & $2.5 mm of EBIT for every store that is consolidated between the merging parties (assuming DKS captures 25% share & achieves a 20% contribution margin). This should keep DKS' share gains going well past the next few Qs.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- UPDATE: Stifel Downgrades PennTex Midstream Partners, LP (PTXP) to Hold
- UPDATE: Stifel Upgrades Antero Midstream Partners LP (AM) to Buy
- Wedbush Raises Price Target on Regions Financial (RF) to $15; Reiterates Outperform
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS View
Related EntitiesUBS, Definitive Agreement
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!