Oppenheimer Raises Rating on Dick's Sporting Goods (DKS) to Outperform

September 15, 2016 6:38 AM EDT
Get Alerts DKS Hot Sheet
Price: $60.28 -1.87%

Rating Summary:
    24 Buy, 16 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 21 | Down: 36 | New: 11
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(Updated - September 15, 2016 9:57 AM EDT)

Oppenheimer upgraded Dick's Sporting Goods (NYSE: DKS) from Perform to Outperform with a price target of $75. Analyst Brian Nagel sees market share opportunity following recently bankruptcies.

"For a long while, we have maintained a rather cautious stance on DKS, upon concerns of challenges within the Sporting Goods sector and, in our view, a less-than-optimal capital deployment strategy at the chain. Clients should not interpret our upgrade of DKS as some type of longer term, 'all clear' call for the company. That said, we are increasingly optimistic that despite continued underlying woes for Dick’s, the company should effectively capitalize upon a building wave of freed-up market share within the group and believe that even after a recent move higher in DKS, shares still do not fully discount for prospects for potentially better sales trends nearer term," said Nagel.

"Over the past several months, a number of leading national and regional Sporting Goods chains, including The Sports Authority and Sports Chalet, have filed for bankruptcy and, in total, closed in excess of 500 retail locations. Earlier this week, Golfsmith filed for bankruptcy and announced plans to shutter at least some of its 100 domestic locations. We look upon recent fallout at leading Sporting Goods chains as a function of a challenging sector and internal short-comings," continued the analyst.

Nagel added, "Over the past several months, a number of leading national and regional Sporting Goods chains, including The Sports Authority and Sports Chalet, have filed for bankruptcy and, in total, closed in excess of 500 retail locations. Earlier this week, Golfsmith filed for bankruptcy and announced plans to shutter at least some of its 100 domestic locations. We look upon recent fallout at leading Sporting Goods chains as a function of a challenging sector and internal short-comings."

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 $58.65 yesterday.



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