Analyst Robert Ohmes from Bank of America Securities maintained a Buy rating on Dick’s Sporting Goods (DKS – Research Report) and keeping the price target at $250.00.
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Robert Ohmes has given his Buy rating due to a combination of factors, primarily driven by Dick’s Sporting Goods’ strategic acquisition of Foot Locker. This acquisition is expected to significantly enhance Dick’s market presence, expanding its addressable market opportunity to approximately $300 billion globally. The deal is anticipated to be accretive to earnings per share in the first full fiscal year after closing, with expected cost synergies ranging from $100 to $125 million through procurement and direct sourcing efficiencies.
Additionally, the acquisition is poised to strengthen relationships with key brand partners, notably Nike, potentially leading to more premium product allocations at higher margins. Dick’s Sporting Goods’ strong omnichannel execution, evidenced by a 4.5% increase in first-quarter comparable sales, further supports the Buy rating. The company’s robust digital capabilities and improved vendor allocations are expected to drive sales and gross margin growth, justifying the price objective of $250 per share.
Ohmes covers the Consumer Cyclical sector, focusing on stocks such as O’Reilly Auto, Driven Brands Holdings, and Costco. According to TipRanks, Ohmes has an average return of 9.4% and a 59.08% success rate on recommended stocks.