Dick’s Sporting Goods (DKS) has received a new Buy rating, initiated by Goldman Sachs analyst, Kate McShane.
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Kate McShane has given her Buy rating due to a combination of factors including Dick’s Sporting Goods’ recent acquisition of Foot Locker, which positions it as the largest sporting goods retailer globally. This strategic move is expected to enhance vendor relationships and differentiate the company from its competitors, leveraging the global scale and reach of the combined entity.
Despite Foot Locker’s previous underperformance, McShane anticipates that Dick’s management will significantly improve Foot Locker’s performance through better brand management, store layout enhancements, and superior service levels. These improvements are projected to drive better margins and top-line growth for Foot Locker, while Dick’s Sporting Goods continues to gain market share with its strong merchandising strategy and innovative store formats. The combined valuation of Dick’s and Foot Locker is estimated at $274.
In another report released on September 19, Telsey Advisory also maintained a Buy rating on the stock with a $255.00 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.