Analyst Simeon Gutman from Morgan Stanley maintained a Buy rating on Dick’s Sporting Goods (DKS – Research Report) and keeping the price target at $255.00.
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Simeon Gutman has given his Buy rating due to a combination of factors that highlight Dick’s Sporting Goods’ potential for growth and value creation. The company has been positively reshaped over the past five years, establishing itself as a leader in the sporting goods and athleisure market. This transformation is driven by secular growth trends, market share gains, stronger relationships with key brands, and advancements in digital and AI technologies.
Despite the potential risks associated with a large acquisition, such as the rumored purchase of Foot Locker, Gutman sees opportunities for Dick’s Sporting Goods to enhance its scale and purchasing power. The acquisition could increase Dick’s presence in the lucrative US footwear market and potentially be accretive to earnings per share by 2027. Additionally, the potential for synergies and strategic store closures could further strengthen the company’s market position, making it an attractive investment opportunity.
In another report released on May 12, Barclays also maintained a Buy rating on the stock with a $223.00 price target.