Market Overview

I think you’ll love what you hear,
what you’ll see and the opportunities
that will be set before you.
- Jon Najarian

Morgan Stanley: Dicks Sporting Goods Could Take Market Share From The Sports Authority


Morgan Stanley commented on Dicks Sporting Goods Inc (NYSE: DKS) amid the news that The Sports Authority Inc. may default.

Analyst Simeon Gutman presented a "DKS Overlap with The Sports Authority" store analysis in a research note and suggested that a  hypothetical merger did not make sense.

“The Sports Authority and DKS have a relatively high footprint overlap. ~40 percent of The Sports Authority’s 451 stores are within 5 miles of Dick’s 603 stores (~65 percent within 10 miles),” according to the note.

Gutman felt that with The Sports Authority’s high debt load and store overlap with DKS, it may be preferable for DKS to continue taking market share from its struggling competitor.

The firm maintained an Equal-weight rating on the stock and noted that there should be good downside protection, however, upside expectations were limited.

Channel checks and supplier analysis indicated that Q4 comps will come in slightly below consensus with EPS either at or below consensus. On the upside, the Gutman felt that an in-line guide for 2015 could help the stock offset a modest EPS miss.

“Applying the current 17x multiple to 2016 numbers would produce a stock price in the low $60‘s. While decent in our view, it is not compelling enough to be more constructive, Gutman concluded.

Dicks Sporting Goods recently traded at $55.07, up 0.35 percent.

Latest Ratings for DKS

Apr 2019ReinstatesNeutral
Dec 2018MaintainsBuyBuy
Dec 2018DowngradesBuyNeutral

View More Analyst Ratings for DKS
View the Latest Analyst Ratings

Posted-In: Morgan Stanley Simeon Gutman The Sports AuthorityAnalyst Color Analyst Ratings


Related Articles (DKS)

View Comments and Join the Discussion!

Latest Ratings

GRUBInitiates Coverage On
HOTHInitiates Coverage On
NDRAInitiates Coverage On
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at

Morgan Stanley: Crude Oil Troubles Will Grow

Stifel Upgrades Corporate Office Properties Trust