Citi Has Buy on Dick's Sporting Goods

Citi Investment Research is out with a research report on Dick's Sporting Goods Inc

and it has a Buy rating and a $43 price target on shares. In a note to clients, Citi Investment Research writes, "We remain constructive on the name based on 1) guidance for flat comps in 2H which appear conservative, 2) opportunities for accelerating square footage growth (which has already accelerated from +6% to 8%, but could increase), 3) continued progress in growing the e-commerce business (e-commerce represents around 6% of sales), 4) margins benefiting from, better inventory control and an increase in private brands and 5) negative investor sentiment going into Q3 earnings. We believe the long term thesis remains intact on continued improvement in OM% (which should reach double digits over the next 3-5 years), ongoing execution on solid athletic apparel trends, footwear innovation and momentum, a change in store mix to team sports away from some fitness, and new ideas in the golf category." Shares of DKS gained $1.28 on Friday to close at $39.99, a gain of 3.31%.