Belus Capital's Sozzi Upgrades Dick's from Sell to Hold
Belus Capital Advisors upgraded Dick's Sporting Goods (NYSE: DKS) from Sell to Hold Tuesday morning. The firm's Brian Sozzi raised his price target from $46 to $54.
Sozzi's upgrade is not “overly enthusiastic given relative and absolute valuation considerations in a retail sector undergoing fundamental changes that are placing pressure on average unit retail prices.” The analyst does see opportunities in a re-merchandized fitness section, wearables, and fitness apparel & sneaker wars.
Inclement weather has been the excuse for poor performance from many retailers this earnings season, but Sozzi believes the cold winter will create “demand for top brands in North Face, Under Armour, and Columbia Sportswear,” which will only help Dick's.
Shares of Dick's are unchanged in premarket trading, sitting at $51.36.
BZ NOTE: Dick's is expected to release fourth quarter 2013 earnings March 10th.
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