UPDATE: Oppenheimer Downgrades Dick's Sporting Goods to Perform, Lowers PT on Near-Term Challenges

In a report published Friday, Oppenheimer analyst Brian Nagel downgraded the rating on Dick's Sporting Goods DKS from Outperform to Perform, and lowered the price target from $56.00 to $44.00. In the report, Oppenheimer noted, “We are lowering our rating on DKS to Perform from Outperform. DKS continues to represent one of the most attractive longer-term new unit growth stories in Hardlines Retail. The chain operates the pre-eminent large box format in Sporting Goods Retail and enjoys close relationships with key industry manufacturers. In the nearer-term we are increasingly concerned that recent sales weakness at DKS is likely to persist as the chain contends with the after-effects of unfavorable weather and a number of acute product issues throughout its stores. The issues at DKS appear transitional in nature. We do not foresee investors awarding shares a higher multiple until earnings growth re-accelerates and again tops expectations.” Dick's Sporting Goods closed on Thursday at $46.49.