Sterne Agee Adjusts EPS Estimate on Dick's Sporting Goods

In a note out today, Sterne Agee raised its 2012 EPS and revenue estimates on Dick's Sporting Goods (NYSE: DKS) to $2.43 and $5.8 billion from $2.38 and $5.2 billion to reflect a 53rd week in 2012. Sterne Agee rates Dick's underperform with a $36 price target, which is below where the stock currently trades.

“We view DKS as one of the riskier names in our universe as we believe the company's position as a premium athletic retailer is being threatened due to changes DKS has made in its customer service model. DKS' aggressive store growth plan will most likely be through acquisitions, and the predatory pricing the company has exhibited in the past may further damage its premium sports retailer image,” Sterne Agee said in the note.