Barclays maintains DKS stock Overweight with $254 target

Published 11/03/2025, 15:18
Barclays maintains DKS stock Overweight with $254 target

On Tuesday, Barclays (LON:BARC) analyst reiterated a positive stance on Dick’s Sporting Goods (NYSE:DKS), maintaining an Overweight rating and a $254.00 price target. The sporting goods retailer, currently valued at $16.77 billion by market cap, has demonstrated its superior position within the industry, with fourth-quarter results showcasing a robust comparable sales increase of 6.4% and strong full-price sales, as indicated by their gross margin outperformance of 35.8%. According to InvestingPro analysis, the company trades at a relatively modest P/E ratio of 14.6x despite its growth trajectory.

Dick’s Sporting Goods’ success is attributed to its strategic multi-brand approach, which Barclays believes will allow the company to excel even in uncertain market conditions. The analyst praised the company’s fourth-quarter performance, highlighting it as evidence of its leading status in the sporting goods sector. InvestingPro data reveals the company’s strong financial health with consistent dividend payments for 14 consecutive years and healthy revenue growth of 5.67% over the last twelve months.

The company’s unique House of Sport concept, offering a wide range of popular brands under one roof, is seen as a key driver for continued market share growth. Barclays has previously identified Dick’s Sporting Goods as the "next great compound growth retail story," a sentiment that is reinforced by the latest financial outcomes.

Dick’s Sporting Goods’ fourth-quarter earnings have solidified its reputation as a top performer in the market. Barclays’ affirmation of the Overweight rating and price target reflects confidence in the company’s business model and its potential for sustained growth moving forward.

In other recent news, Dick’s Sporting Goods reported impressive financial results for the fourth quarter of 2025, surpassing analyst expectations with an earnings per share (EPS) of $3.62, compared to the projected $3.48. The company’s revenue also exceeded forecasts, reaching $3.89 billion against an anticipated $3.76 billion. Dick’s Sporting Goods achieved record annual sales of $13.4 billion, with a full-year EPS of $14.05, up from $12.91 the previous year. The company plans to expand significantly in 2025 with the opening of 16 new House of Sport locations and 18 new Fieldhouse locations. Despite the positive earnings report, the stock experienced a 1% decline in pre-market trading, reflecting broader market trends. Looking ahead, Dick’s Sporting Goods projects a 2025 EPS range of $13.80 to $14.40 and anticipates continued gross margin expansion. The company also plans to invest approximately $1 billion in capital expenditures, including a new distribution center in Fort Worth, Texas. Analyst sentiments from firms like Barclays and Morgan Stanley (NYSE:MS) highlight the company’s strategic initiatives and strong market position.

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