Baird notes that Dick’s Sporting (DKS) reported solid results and “prudent outlook.” The company reported a modest Q3 beat, with comp/margin upside partially offset by higher SG&A as the company continues to strategically reinvest to fuel long-term growth, the firm says. Baird notes top-line momentum remains impressive, albeit Q3’s -0.6% transaction comp stole some luster. Inventory build also has the market on edge, but the increase was a conscious decision to lean into key items/categories, Baird argues. Net, with valuation undemanding and Q4’s top-line guide seemingly conservative, the firm is “comfortable accumulating shares on pullbacks.” Baird has a Neutral rating on the shares with a price target of $235.
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