Morgan Stanley Still Sees Potential For Dick's Sporting Goods

In a report published Wednesday, Morgan Stanley analyst Jay Sole reiterated an Equal-Weight rating on

. In the report, Morgan Stanley noted, “DKS' Q1 report revealed the golf and hunting businesses are falling short of expectations. Street EPS estimates likely fall 9%. The stock dropped 18%. Valuation, at 13.6x FY2 EPS, is at a trough level and looking more compelling given DKS still delivers a 12% 4-year EPS CAGR in our model.” Dick's Sporting Goods closed on Tuesday at $43.60.