Market Overview

Citi Upgrades Dicks Sporting Goods, A Retail Survivor

Citi Upgrades Dicks Sporting Goods, A Retail Survivor

Dicks Sporting Goods Inc (NYSE: DKS) could get back in the game in 2018.

The sporting goods retailer has had little to celebrate in 2017, with shares down 44 percent year-to-date, amid a rapidly changing industry and a heavily promotional environment.

A new sell-side report projects that Dicks will clear the low expectations it has set for itself in 2018 thanks to a host of catalysts.

The Analyst

Kate McShane of Citi upgraded Dicks Sporting Goods from Neutral to Buy and raised the price target from $28 to $35. 

The Thesis

Although Dicks Sporting Goods emerged as the victor amid bankruptcies and a consolidating sporting goods retail space, shares fell alongside the industry's prospects, prompting fears that retail sporting goods stores may soon be a thing of the past.

But with a strong brand and revised outlook, Dicks appears to be the Best Buy Co Inc (NYSE: BBY) of its sector — the long-term survivor in a struggling industry, McShane said. The company could clear some of the hurdles it faced in the prior year, the analyst said. 

Dicks Sporting Goods pulled back 2018 expectations during the third quarter, forecasting an EPS decline of up to 20 percent. Citi projects upside to these low expectations, McShane said. 

“We see upside to [the] DKS 2018 EPS outlook on better sales from cold weather, [the] industry’s workdown on inventory to help 2H, newness from the vendors and more exposure to growth brands like Adidas," she said. 

Citi ranks Dicks Sporting Goods as the No. 4 company in its apparel and footwear picks.

Price Action

Dicks closed Tuesday at $29.27, down 1.11 percent. 

Related Links: 

Citi Names 'Controversial' Foot Locker As Its Top Footwear, Apparel Pick

Analyst Raises Nike Price Target Ahead Of Q2 Print

Photo from Wikimedia. 

Latest Ratings for DKS

Aug 2019MaintainsNeutral
Jul 2019Initiates Coverage OnNeutral
Apr 2019ReinstatesNeutral

View More Analyst Ratings for DKS
View the Latest Analyst Ratings

Posted-In: Citi Dicks Sporting Goods retailAnalyst Color News Upgrades Price Target Analyst Ratings Best of Benzinga


Related Articles (BBY + DKS)

View Comments and Join the Discussion!

Latest Ratings

HSKACanaccord GenuityMaintains75.0
AVGOMorgan StanleyMaintains265.0
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

Hanesbrands Loses A Longtime Bull

Gene Munster On Apple's 2018 Outlook