All The Sell-Side Reactions To Dick's Sporting Goods Q3

Dicks Sporting Goods Inc DKS reported expectation-exceeding earnings on Tuesday. The share price, however, fell on conservative Q4 guidance.

While investors reacted to the guidance in Tuesday's trading, analysts looked further. The gained market share from The Sports Authority and other bankruptcies are just beginning to materialize, according to the Street.

Sell-Side Reactions From The Street

BMO Capital Markets: Analyst Wayne Hood maintains his Outperform rating while raising his target from $65 to $67.

“Looking ahead, we see The Sports Authority market share gains, the Golfsmith acquisition, full-service footwear decks, and growth in private brands as drivers behind revenue growth,” said Hood.

“We expect the market share gains (in-store and online) from TSA, Golfsmith and other bankruptcies to continue (and likely accelerate) in Q4 and 2017 (DKS is opening the remaining 19 of the 22 TSA stores it took on in 1Q17, in addition to the 30 Golfsmith stores DKS is planning to open by end of Q4),” said Lyon.

Citi Research: Analyst Kate McShane maintains a Buy rating while lowering her target price from $68 to $66.

“We continue to believe that DKS is well-positioned to capture market share and that longer term market and margin expansion potential make DKS an attractive Buy,” said McShane.

At last check, Dick's shares were up 2.4 percent at $58.02.