Truist analyst Joseph Civello keeps a Buy rating and $245 price target on Dick’s Sporting (DKS), saying the stock’s initial sell-off on its announced acquisition of Foot Locker (FL) looks like an over-reaction. The magnitude of downside appeared overblown as the initial $2.5B market cap decline for Dick’s effectively erased Foot Locker’s value despite the benefits that adding new customer cohorts/geographies, immense scale, and even more leverage with partners can yield for the company, the analyst tells investors in a research note. This has also created an attractive entry-point into what remains a solid growth story, Truist adds.
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Read More on DKS:
- Dick’s Sporting price target lowered to $220 from $250 at Telsey Advisory
- Foot Locker price target raised to $24 from $20 at Telsey Advisory
- Charter upgraded, Cisco downgraded: Wall Street’s top analyst calls
- Cautious Hold Rating on Dick’s Sporting Goods and Foot Locker Merger Amid Execution Risks and Strategic Challenges
- Foot Locker price target raised to $24 from $14 at Baird
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