Dick's Sporting Goods (DKS): TSA Liquidation Benefit Starts in August - UBS

UBS analyst, Michael Lasser, believes pending TSA closures clear a multi-quarter runway of outperformance for Dick's Sporting Goods (NYSE: DKS).

The liquidation of TSA will cause some noise for Dick's in 2Q but this will quickly dissipate leaving an extended path of sales & earnings acceleration. Checks of 25 TSA stores across the U.S. indicate that the liquidation sales are drawing in traffic & many of the stores have 50% to 75% of their inventory stock remaining. The majority of the locations are expected to close by August (a recent news story corroborated this & said the end of July). Plus, Sports Chalet has already closed its ~45 locations. Together, this should leave DKS with a clearer competitive landscape once the heart of Back-to-School kicks into gear and the Olympics ignites interest in sports (the games begin on Aug 5th).

No change to Buy rating but price target goes to $55 from $53.

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 $45.06 yesterday.

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