Stifel Reiterates Hold Rating on Dick's Sporting Goods (DKS)

Stifel analyst Jim Duffy reiterated a Hold rating and $192.00 price target on Dick's Sporting Goods (NYSE: DKS).

The analyst comments "The Wall Street Journal reports Dick’s Sporting Goods could announce the acquisition of Foot Locker as early as Thursday 5/15. The potential deal would reportedly value FL at $24/share or $2.3bn and create a combined $21bn revenue athletic specialty/sporting goods retailer with ~8% EBIT margin. With the deal DKS could augment customer reach and become a global business. We view the acquisition as an opportunistic expansion given Foot Locker’s struggles and discount valuation, and not a reactionary defensive response to potential tariff pressures. Capital deployment to M&A may signal limited organic reinvestment opportunity with DKS nextgen store returns becoming more challenging. Shifting value creation strategy towards M&A, cash flow, and deleverage deserves a lower multiple than organic growth. We reaffirm our $192 target price, representing 12.0x P/E on potential FY26E pro forma earnings power of $16.05, or 7.3x EV/EBITDA on potential pro forma adj. EBITDA of $2.5bn."

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 $209.61 yesterday.

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