Sportsman's Warehouse gains amid new buy rating at B. Riley

May 17, 2022 5:05 PM ETSportsman's Warehouse Holdings, Inc. (SPWH)By: Joshua Fineman, SA News Editor

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Sportsman's Warehouse (NASDAQ:SPWH) rose 6% in regular trading amid a a new buy rating and a $14 price target from B. Riley.

"Coming out of the pandemic that drove a significant increase in outdoor activity and shooting sports participation, we believe SPWH is well positioned to take incremental market share over the coming years as those participants continue these activities and return for additional purchases—especially within activities where consumables play a major role," B. Riley analyst Eric Wold wrote in an initiation piece on Monday.

Sportsman's Warehouse (SPWH) valuation at 3.5x and 3.1x B. Riley's FY22 and FY 23 AEBITDA estimates represents a 70% lower multiple than the implied 10.5x multiple from Sportsman's Warehouse failed sale to the Great Outdoors.

Wold believes that SPWH should trade at leas at a pre-pandemic multiple, if not higher.

Sportsman's Warehouse short interest is 13%.

Shares of Sportsman's Warehouse (SPWH) plunged 45% through Monday after the company terminated an $18/share sale to Great Outdoors in early December after receiving feedback that the U.S. Federal Trade Commission that the agency was unlikely to approve the combination.

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