Dick’s Sporting Goods, the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Robert Ohmes from Bank of America Securities maintained a Buy rating on the stock and has a $240.00 price target.
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Robert Ohmes has given his Buy rating due to a combination of factors that suggest strong future performance for Dick’s Sporting Goods. The company is expected to report positive second-quarter results, with adjusted earnings per share projected at $4.23 and a comparable sales growth of 3%. This is supported by data indicating accelerated sales momentum, which could exceed initial forecasts. Additionally, the gross margin is anticipated to improve slightly, driven by merchandise margin expansion.
Furthermore, the acquisition of Foot Locker is seen as a strategic move that could enhance brand partnerships and increase profitability. The acquisition is expected to leverage Dick’s Sporting Goods’ higher margin clearance capabilities and omnichannel infrastructure, potentially leading to a stronger market presence and improved vendor allocations. The long-term prospects of increased profit contributions from Foot Locker, combined with digital and clearance capabilities, support the Buy rating, with a price objective set at $240.
In another report released on August 22, Telsey Advisory also maintained a Buy rating on the stock with a $225.00 price target.
Based on the recent corporate insider activity of 50 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.