Cabela’s: The Fed Says… Yes!

Forward View is reiterating our Buy rating and $61.50 price target on Cabela’s, although the company’s acquisition by Bass Pro Shops should be finished in a little over 15 days. The Federal Reserve has approved the sale of the World’s Foremost Bank to Synovus (NYSE: SNV), which will then sell the Cabela’s credit card business to Capital One (NYSE: COF) in a game of financial hot potato. The Office of the Comptroller of the Currency also won’t interfere with the transaction. In summary, the drama is over. Everybody at Cabela’s and Bass Pro can uncork some champagne tonight. Once the businesses are officially combined, the real work of reigniting growth must begin. Competitive forces won’t be easing post-acquisition.