Dick's Sporting Goods (DKS) Positioned to Gain Share from Academy's Woes - Wedbush

Wedbush analyst Christopher Svezia reiterated his Outperform rating and $65 price target on Dick's Sporting Goods (NYSE: DKS) saying as the company's largest competitor, Academy Sports + Outdoors (“Academy”), struggles to deliver comp growth and is weighted down by almost $2bn in debt (~5x LTM total debt leverage), virtually debt-free DKS that delivered strong positive comps growth this year is provided with an opportunity to gain market share, potentially at Academy’s expense.

Svezia commented, " As a result, we see potential upside to DKS business beyond the TSA benefit, which we expect to add ~$0.37 per share in FY17. While we are not saying that Academy is on track to follow TSA’s path, we highlight DKS as the sector leader and draw attention to another upside opportunity for the company, which has the resources and ability to access capital to aggressively take market share from financially weaker Academy. We would note that recent store openings in the Houston area (six new stores) and El Paso are a testament to this thesis."

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 $53.11 yesterday.

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