Dick's Sporting Goods (DKS) Still Has Significant Opportunity to Gain Share, UBS Data Shows

UBS analyst Michael Lasser reiterated a Buy rating and $63 price target on Dick's Sporting Goods (NYSE: DKS) after data from the UBS Evidence Lab shows that the market is still highly fragmented and DKS has a significant opportunity to gain share.

Lasser notes that despite being the leader in the sector, it only has ~10% of the market. "We expect that it will consolidate the market over time," he said.

"DKS recently increased its credit line to $1bn, we estimate it will have $320 mm in cash at the end of FY'15, and it didn't repurchase any stock in 2Q (we model only $50 mm in buybacks in 2H'15). Based on such, we think DKS has ample resources to further its strategy of serving more customers from more locations."

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 $50.21 yesterday.

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