Janney Capital Remains Constructive on Dick's Sporting Goods (DKS) Post Q4
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Price: $205.48 -0.3%
Rating Summary:
24 Buy, 24 Hold, 0 Sell
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Today's Overall Ratings:
Up: 2 | Down: 3 | New: 2
Rating Summary:
24 Buy, 24 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 2 | Down: 3 | New: 2
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Janney Capital analyst Eric Tracy reiterated a Buy and $65 fair value target on Dick's Sporting Goods (NYSE: DKS) following fourth quarter results.
Tracy commented, "We remain constructive in the shares of DKS following the company's 4Q print (in-line vs. pre-announced release on 2/10), with legit unit growth (~60 new doors expected in FY14, or +9% growth), improving store productivity through SiS (NKE, UA, TNF) and reallocation of space (from fitness to women's/youth apparel), and continued evolution of the digital platform presenting meaningful opportunities to improve the model. Management's +3-4% comp guide for 1Q/FY14 appears achievable against easier compares through 1H14 (-2.1% average comp over the next two quarters); that said, softness in golf (prolonged winter weather) and guns/ammo (difficult y/y compares) are likely to continue over the next several quarters, in our view. The recent share run (+10% vs. +3% in the S&P over the prior month) has started to embed some of the positives, but with shares trading at 16x our FY15 EPS, we believe risk/reward remains decent."
The firm trimmed FY15 EPS to $3.50 (from $3.55).
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 $56.67 yesterday.
Tracy commented, "We remain constructive in the shares of DKS following the company's 4Q print (in-line vs. pre-announced release on 2/10), with legit unit growth (~60 new doors expected in FY14, or +9% growth), improving store productivity through SiS (NKE, UA, TNF) and reallocation of space (from fitness to women's/youth apparel), and continued evolution of the digital platform presenting meaningful opportunities to improve the model. Management's +3-4% comp guide for 1Q/FY14 appears achievable against easier compares through 1H14 (-2.1% average comp over the next two quarters); that said, softness in golf (prolonged winter weather) and guns/ammo (difficult y/y compares) are likely to continue over the next several quarters, in our view. The recent share run (+10% vs. +3% in the S&P over the prior month) has started to embed some of the positives, but with shares trading at 16x our FY15 EPS, we believe risk/reward remains decent."
The firm trimmed FY15 EPS to $3.50 (from $3.55).
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 $56.67 yesterday.
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