Buy Rating for Dick’s Sporting Goods: Strong Financial Performance and Strategic Initiatives Drive Positive Outlook

Bank of America Securities analyst Robert Ohmes has reiterated their bullish stance on DKS stock, giving a Buy rating today.

Robert Ohmes has given his Buy rating due to a combination of factors including Dick’s Sporting Goods’ strong financial performance and strategic initiatives. The company reported a solid first quarter with adjusted earnings per share of $3.37 and a comparable sales increase of 4.5%, driven by growth in both ticket size and customer traffic. The gross margin improved by 41 basis points year-over-year, supported by merchandise margin gains, despite some occupancy cost pressures.
Furthermore, the planned acquisition of Foot Locker is expected to enhance brand partnerships and provide significant cost synergies. This acquisition is anticipated to be accretive to earnings per share in the fiscal year 2027, with potential benefits from Dick’s omnichannel infrastructure and brand presentation capabilities. The analyst also highlights the potential for improved vendor allocations and digital capabilities, which could further support sales and margin expansion. These factors contribute to a positive outlook, justifying the Buy rating with a price objective of $250.

Ohmes covers the Consumer Cyclical sector, focusing on stocks such as AutoZone, O’Reilly Auto, and Dick’s Sporting Goods. According to TipRanks, Ohmes has an average return of 8.8% and a 57.79% success rate on recommended stocks.

In another report released today, Barclays also maintained a Buy rating on the stock with a $232.00 price target.