Paul Lejuez, an analyst from Citi, maintained the Buy rating on Dick’s Sporting Goods. The associated price target remains the same with $280.00.
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Paul Lejuez has given his Buy rating due to a combination of factors that suggest a positive outlook for Dick’s Sporting Goods. The company is expected to report strong third-quarter earnings, driven by robust performance in its core business areas such as footwear, apparel, and team sports. Despite some weaker results from the FL segment, the overall growth in comparable sales and gross margin expansion supports a favorable view.
Furthermore, management is anticipated to raise their fiscal 2025 earnings guidance, reflecting confidence in the business’s ability to offset equity dilution from recent acquisitions. The potential for increased share repurchases and synergies from the FL acquisition adds to the positive risk/reward scenario. Additionally, Dick’s Sporting Goods is expected to outperform the industry, as indicated by Citi’s credit card data, which shows a slight deceleration in the sporting goods category but an expectation for DKS to continue its strong performance.
In another report released on October 22, Morgan Stanley also reiterated a Buy rating on the stock with a $253.00 price target.