Sportsman’s Warehouse jumps after Roth Capital points to turnaround potential

Sportsman’s Warehouse Holdings (NASDAQ:SPWH) moved higher in early trading on Monday after Roth Capital Partners started off coverage on the sporting goods retailer with a Buy rating.

The firm’s positive thesis is based on the view that Sportsman’s (SPWH) has an attractive position in the large shooting sports market, which is expected to set it up for enabling healthy and defensible growth ahead. SPWH was also highlighted by analyst Matt Loranda as turning the corner on cyclical headwinds and balance sheet erosion that have weighed on the stock. Looking ahead, a sustained return to growth and margin improvement is anticipated for the years ahead. Lake Street set a price target of $5.00 on SPWH based on a 5.3X multiple of the firm’s 2025 adjusted EBITDA estimate.

Shares of SPWH were up 11.68% to $4.26 at 12:55 p.m. Short interest on the stock stands at 9.97% of the total float.