Dick\'s Sporting Goods (DKS) PT Lowered to $61 at MKM Partners; Reiterates Buy
MKM Partners lowered its price target on Dick\'s Sporting Goods (NYSE: DKS) to $61.00 (from $67.00) while maintaining a Buy rating.
Analyst Patrick McKeever commented, "Dick's saw another quarter of 5% comps and delivered strong gross margin improvement even as most retailers grappled with negative traffic and margin pressure, but the stock fell 9% yesterday (SPX down slightly) as FY17 EPS guidance came in below expectations, particularly in 1Q17 which is expected to face much higher pre-opening expense (for 22 more stores than LY) and incremental investment spending. The pullback has DKS trading at a forward P/E of 11.9x, well below the 16.8x historical valuation."