UPDATE: JP Morgan Raises PT on Dick's Sporting Goods on Solid Operational Performance

In a report published on Wednesday, JP Morgan analyst Christopher Horvers raised the price target on Dick's Sporting Goods DKS from $59 to $61, and reiterated an Overweight rating.

In the report, JP Morgan noted, " In spite of continued top-line sluggishness, DKS was able to leverage payroll and advertising in the quarter. Even more impressive, this comes as DKS is aggressively investing back into the business and growing square footage at a HSD rate. Investments were ~$0.03 in the quarter and are expected to be $0.12 for the year. These range from ecommerce, to new concepts, IT and remodels. Given easing fundamentals and expectations for accelerating comp trends we continue to believe DKS will pierce its 10% LT EBIT target in the next two-to-three years. This will be driven by both gross margin expansion and SG&A leverage, in our view."

Dick's Sporting Goods closed at $52.75 on Tuesday.