Deutsche Bank Maintains a 'Buy' on Dick's Sporting Goods (DKS); Indicators Suggest Trends have Bottomed

November 11, 2009 7:09 AM EST

Deutsche Bank maintains a 'Buy' on Dick's Sporting Goods (NYSE: DKS), price target increased from $25 to $29.

Deutsche analyst says, "Industry sales trends were better in 3Q than in 2Q and supplier commentary followed the same pattern. For instance, industry sales are tracking up 0.3% in 3Q compared to down 3.1% last quarter. Similarly, Under Armor's (NYSE: UA) sales grew 16% versus 5% last quarter, and North Face was up 10% versus 4%. Couple this with stable to easier comparisons and we believe 3Q09 comps should improve versus 2Q, leading to our increase in EPS estimates.

"Based on improving indicators, we are increasing our estimate to $0.08 from $0.06 while consensus is at $0.07 and guidance was $0.04 - $0.07. Our model is now predicated on a comp decline of 1.5%, which is better than guidance of down 3%-5% and consensus of about a 3.0% comp decline. For the year, we are now at $1.14 versus consensus of $1.09 and guidance of $1.02 - $1.07."

To see more analyst ratings on DKS Click Here.

Dick's Sporting Goods, Inc., a sporting goods retailer, together with its subsidiaries, offers sporting goods equipment, apparel, and footwear for men, women, and children.

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