Cabela's (CAB) Better LBO Candidate Than Dick's (DKS), Says Wells Fargo

Wells Fargo maintained a Market Perform rating on Dick's Sporting Goods (NYSE: DKS). Comments follow rumors it is in early stage LBO talks.

In the view of analyst Matt Nemer, Dick's is a legitimate LBO candidate given consistent EBITDA growth. However, Nemer noted CEO Ed Stack's controlling stake, and he thinks Stack would need to give up significant control in a deal. He went on to say Cabela's (NYSE: CAB) is better candidate for a private-equity transaction.

For an analyst ratings summary and ratings history on Dick\'s Sporting Goods click here. For more ratings news on Dick\'s Sporting Goods click here.

Shares of Dick\'s Sporting Goods closed at $49.24 yesterday.

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