Shares in Dick’s Sporting Goods (DKS) paced higher today despite a leading analyst warning that its business will lose momentum with its acquisition of Foot Locker (FL).
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Leadership Distraction
Five-star TipRanks-rated analyst Sam Poser of Williams Trading said that the proposed $2.4 billion takeover of rival Foot Locker would prove a distraction to its leadership, “despite management’s claims to the contrary.”
He added that running an athletic specialty retailer that focuses on fashion lifestyle consumers, and operates smaller stores, many of which are in malls or in urban street locations, is not within the “core competencies” of Dick’s Sporting Goods.
“The acquisition will prove to cause Dick’s core businesses to lose momentum, and the integration of Foot Locker will prove far more challenging than DKS’ management believes,” Poser said.
Tariff Boost
Despite this Poser, who has a Hold rating on the stock and a $200 price target, said Dick’s Sporting Goods Q1 results earlier this week were strong.
In the period, DKS posted adjusted earnings per share of $3.37 for the quarter ended May 3, 2025, surpassing analyst estimates of $3.20. Revenue climbed 5.2% year-over-year to a record $3.17 billion, exceeding the consensus forecast of $3.12 billion.
Poser also said that the Court of International Trade (CIT) striking down the reciprocal tariffs put in place on Liberation Day could also benefit DKS.
“The court decision is good news for DKS, other companies, and consumers, especially in light of the comments that President Trump made on May 25th saying ‘we’re not looking to make sneakers and t-shirts’ in the U.S.,” Poser said.
Is DKS a Good Stock to Buy Now?
On TipRanks, DKS has a Moderate Buy consensus based on 9 Buy, 12 Hold and 1 Sell rating. Its highest price target is $285. DKS stock’s consensus price target is $219.79 implying an 22.88% upside.
