Wells Fargo Starts Cabela's (CAB) at Outperform; Well Insulated From Amazon (AMZN), Plus Many Catalysts Ahead

Wells Fargo initiates coverage on Cabela's (NYSE: CAB) with an Outperform. PT range $42-44.

Wells analyst said, "We believe Cabela's is well insulated from Amazon (Nasdaq: AMZN) with a unique market niche and high percentage of private label and exclusive products that have fostered an extremely passionate customer base. We see Cabela's accelerating square footage growth to 10% in 2012 and 12-13% thereafter, which should drive sustainable 18-20% earnings growth, and yet the shares only trade at 14.7x 2012E EPS."

Other highlighted points: 1) Direct Business Turnaround Could Produce Meaningful Upside; 2) Significant, Underappreciated Gross Margin Opportunities Ahead; and 3) Finance Business Misunderstood And Undervalued, In Our View.

For an analyst ratings summary and ratings history on Cabela's click here. For more ratings news on Cabela's click here.

Shares of Cabela's closed at $36.37 yesterday.

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