Senior research analyst Mark Smith of Feltl and Co. in Minneapolis raised his recommendation on Cabela's to "buy" from "hold" last week after a sell-off of shares in the Nebraska-based retailer.
Investors may have sold shares fearing a return of an assault weapon ban, Smith wrote: "It is hard to handicap the likelihood of new legislation, but the movement has more legs today than any point in recent history."
Smith broke down Cabela's firearms numbers to show the sales of tactical rifles like the one used in the Newtown, Conn., shootings account for just 2 percent of total Cabela's sales.
"We think the recent sell-off is overdone and [Cabela's] shares are attractively priced," he said.
Analysts were busy with Minnesota public companies last week. Dental and veterinary supplier Patterson Cos. Inc. got an upgrade to "buy" from Stifel Nicolaus analyst Jonathan Block. Snowmobile and ATV maker Arctic Cat Inc. was downgraded to ''market perform'' from ''outperform'' by Gerrick Johnson at BMO Capital Markets. And Enteromedics Inc., which makes an obesity treatment system, picked up coverage from Roth Capital analyst Chris Lewis, whose initial recommendation is a ''buy.''