UPDATE: Raymond James Resumes Dick's Sporting Goods (DKS) at Underperform
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Raymond James analyst Matthew McClintock resumes coverage on Dick's Sporting Goods (NYSE: DKS) with a Underperform rating.
The analyst comments "We believe that DKS will survive the “retail apocalypse” as the primary physical retail big box sporting goods destination but see at best minimal growth, if any, in long-term EPS (primarily funded by share repurchases through cash flow as opposed to organic growth). Furthermore, we believe the company’s valuation has become inflated by easy comparisons from several years of under-performance in a similar manner as the department store industry did in 2018 (which was short lived in nature). Fundamentally, we don’t expect recent strong performance in comps to continue beyond more than a few quarters, and even with that performance we don’t expect meaningful margin expansion either this year or in subsequent years."
Shares of Dick's Sporting Goods closed at $39.42 yesterday.
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