Deutsche Bank Sees Stronger Golf Season Helping Dicks

Deutsche Bank Analyst Mike Baker said that sporting goods are a highlight in an otherwise dismal retail sales climate. Since February, retail sales grew just 2.8 percent, compared with a 3.8 percent growth last year. This puts "retail on pace for the weakest increase since the recession year of 2009."

Yet despite this challenged climate, sporting goods sales have increased around 5.8 percent - up from just 0.2 percent growth at this point last year and the fastest pace since 2012. "Sporting goods is one of the few retail categories to be performing better this year versus last year," the note said.

Specifically, golf seems to be having a resurgence. After two years of declines in 2013 and 2014, U.S. golf rounds through April gained 2.2 percent.

According to Baker, this faster growth will help Dicks Sporting Goods Inc DKS post strong Q2 sales. The analyst reaffirmed Deutsche Bank's Buy rating and $63 price target. That price target reflects roughly 17 percent upside from current prices.

Year to date, Dicks gained 8.6 percent following a more than 13 percent decline in 2014. Compared to the SPDR S&P Retail ETF XRT, Dicks has consistently outperformed over the past 52 weeks. The Retail ETF gained just 3 percent year-to-date, while it is up 16.6 percent over the past 52 weeks. Conversely, Dicks is up 21.5 percent over that timeframe.