John Kernan, an analyst from TD Cowen, reiterated the Buy rating on Dick’s Sporting Goods (DKS – Research Report). The associated price target was lowered to $285.00.
John Kernan has given his Buy rating due to a combination of factors that highlight the potential for growth and profitability at Dick’s Sporting Goods. He is optimistic about the contributions from the House of Sport and Fieldhouse stores, expecting these to positively impact same-store sales and EBIT in the latter half of the year. Despite increased capital expenditures and inventory days on hand, Kernan’s EPS estimates are slightly above the company’s guidance, reflecting a positive outlook.
Management’s conservative outlook for FY25, with modest same-store sales growth and gross margin expansion, is offset by strategic investments in new store formats and technology. Kernan anticipates a sustainable same-store sales growth rate and improved gross margins, driven by low clearance levels and a favorable product mix. The expansion plans for House of Sport and Field House, along with the expected revenue from the Gamechanger app, support the capital expenditures and suggest a promising return on investment.
In another report released yesterday, Telsey Advisory also maintained a Buy rating on the stock with a $260.00 price target.
Based on the recent corporate insider activity of 59 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of DKS in relation to earlier this year.
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