UPDATE: Citigroup Reiterates Buy Rating, Raises PT on Dick's Sporting Goods as Management Makes the Right Corrections for 2H & Beyond

In a report published Wednesday, Citigroup analyst Kate McShane reiterated a Buy rating on Dick's Sporting Goods DKS, and raised the price target from $63.00 to $66.00. In the report, Citigroup noted, “DKS posted a solid Q3 beat today on strong execution through near-term headwinds, while also continuing to focus on long-term growth initiatives and cash returns to shareholders. Management's proactive strategy of increased marketing, beefed up staffing in key service-oriented departments, and more opening price points/select competitive action paid off this quarter, as traffic rebounded to +1.9% following 1H declines. While merchandise margins are now expected to be down slightly in 2H (down from previous guidance of 2H expansion), management believes its assortment in the core Dick's concept remains well positioned for holiday (including inventories in seasonal outerwear), while more strategic DTC marketing should further benefit traffic.” Dick's Sporting Goods closed on Tuesday at $56.14.
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: Analyst ColorPrice TargetAnalyst RatingsCitigroupKate McShane
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!