Dick's Sporting Goods (DKS): A Beneficiary Of The Cabela's/Bass Merger - UBS
- Wall Street dips as telecoms slump; AmEx surges
- Microsoft (MSFT) Tops Q1 EPS by 8c
- AMD (AMD) Posts Q3 Operating EPS of 3c; Sees Q4 Revenue Down Sequentially
- AT&T (T) Said to Discuss Idea of Takeover in Time Warner (TWX) Meetings
- After-Hours Stock Movers 10/20: (CERC) (ALKS) (PFPT) (MSFT) Higher; (SKX) (RRGB) (AMD) Lower (more...)
News and research before you hear about it on CNBC and others. Claim your 2-week free trial to StreetInsider Premium 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
- Needham & Company Cuts Price Target on Syntel, Inc. (SYNT) Following Weak 3Q
- Deutsche Bank Downgrades Willis Towers Watson (WLTW) to Sell
- UPDATE: Wells Fargo Upgrades Vail Resorts (MTN) to 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!