Citi upgraded Dick’s Sporting (DKS) to Buy from Neutral with a price target of $280, up from $225, following the close of the Foot Locker acquisition. The firm views the combined company as a “powerful force” in athletic footwear and apparel. The buying power of Dick’s with Foot Locker will create a “category killer,” Citi contends. It believes the new company will post mid-single-digit sales growth and margin expansion as the Foot Locker business gets improved.
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