Sterne Agee CRT upgraded Dick's Sporting Goods (NYSE: DKS) from Neutral to Buy with a price target of $62. Analyst Sam Poser thinks near-term weakness in comps and price offers an attractive entry. Poser is also positive on efforts to take its e-commerce business in house.

"It's time to start picking up some DKS stock. In 2017, the e-commerce platform will be brought fully in house, and the EBIT payoff due to the pure margin accretion and the ending of the e-commerce build out spend, will result in a increase in earnings from 2016 to 2017 of at least 20%. The ecommerce business continues to grow at over 25% and should be over 10% of total sale this year, and in the range of 15% of sales by 2017. There may be some near-term noise, but share repurchases are likely to offset much EPS volatility. DKS is one of 2 best-in-class retailers in sporting goods, has growth ahead, and is moving away from lower margin businesses," said Poser.

"Upgrading to Buy from Neutral. Near-term weakness in SSS and stock price provides an entry point for a strong 2017 story: We understand the street's disappointment with the DKS's SSS miss, but believe the bottom for golf & firearms are in sight. More important, we believe investors should own this name for 2017, when the company takes its e-commerce business in house," added the analyst.

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Shares of Dick's Sporting Goods closed at $56.29 yesterday.