Dicks Is Well Positioned To Pick Up A Substantial Portion Of Sports Authority's Business

Dicks Sporting Goods Inc DKS shares have underperformed notable over the last month, down nearly 20 percent while the S&P 500 fell about 2.6 percent.

The move came as further details in The Sports Authority bankruptcy unfolded. Amid a report on Tuesday a Tiger Capital-led consortium won the bankruptcy auction for The Sports Authority, Barclays analyst Matthew McClintock offered comments Wednesday morning.

"We believe DKS is well positioned to pick up a substantial portion of the TSA business: DKS has increased marketing and payroll expenses to capture the displaced market share," McClintock said. "We expect these investments to be accretive over the next year."

Despite the positive near-term comments, McClintock maintains an Equal Weight rating and $50 price target on shares of Dicks. The analyst has a Negative view on the US Retail Broadlines/Hardlines sector.

Dicks shares continued their trend lower on Wednesday, and closed the session down 3.7 percent at $38.05.