UPDATE: JP Morgan Cuts PT to $59 on Dick's Sporting Goods, Stays Overweight on Risk/Reward
JP Morgan maintained Dick's Sporting Goods (NYSE: DKS) with an Overweight rating and lowered the price target from $61.00 to $59.00.
JP Morgan noted, "We believe that DKS is making appropriate investments that drive sales, margins, and returns over the longer term. … While the apathetic (and the opportunistic bears) might say that there is no reason to run out to buy the stock given the tough compare in 1Q, the new guidance sets a prudent bar and the stock is trading at 15.8x the midpoint of 2013 guidance. Since the March 2009 low, DKS trough FY1 valuation is 16.5x, which occurred in August 2010 (i.e., Europe contagion fear time period). With comparisons easing 460 bps into 2Q due to the weather a year ago, and considering the over-reaction yesterday, we expect any upward movement in the stock to be met with buying."
Dick's Sporting Goods closed at $45.11 on Monday.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.