Dick's (DKS) Gun Sales Should Offset Weakness Created by Mild Weather
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Price: $52.10 -0.48%
Rating Summary:
19 Buy, 4 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Rating Summary:
19 Buy, 4 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Trade DKS Now!
Sterne Agee today reiterated a Buy rating on Dick's Sporting Goods (NYSE: DKS) with a price target of $56.00. Analysts noted there was some concern about the mild winter and its impact on inventory and gross margin, especially in outerwear. In Stern Agee's view these concerns are over-blown, and increased gun & ammo sales should compensate for any shortfall.
"The mild weather during the holiday season negatively impacted sales, but the recent cold spell, based on our checks helped to move a great deal of merchandise. A the same time, we are confident that the increase in the guns and ammo sales more than offset weak outerwear sales," said analyst Sam Poser.
If necessary, Poser thinks Dick's has the ability to cancel orders, which will help it hold the line on margin.
For an analyst ratings summary and ratings history on Dick\'s Sporting Goods click here. For more ratings news on Dick\'s Sporting Goods click here.
Shares of Dick\'s Sporting Goods closed at $47.70 yesterday, with a 52 week range of $40.38-$54.24.
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"The mild weather during the holiday season negatively impacted sales, but the recent cold spell, based on our checks helped to move a great deal of merchandise. A the same time, we are confident that the increase in the guns and ammo sales more than offset weak outerwear sales," said analyst Sam Poser.
If necessary, Poser thinks Dick's has the ability to cancel orders, which will help it hold the line on margin.
For an analyst ratings summary and ratings history on Dick\'s Sporting Goods click here. For more ratings news on Dick\'s Sporting Goods click here.
Shares of Dick\'s Sporting Goods closed at $47.70 yesterday, with a 52 week range of $40.38-$54.24.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
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