DA Davidson cuts DKS stock target to $230, keeps buy rating

On Wednesday, DA Davidson maintained its Buy rating on Dick’s Sporting Goods (NYSE:DKS) but reduced the price target from $273.00 to $230.00. The firm’s analyst, Michael Baker, cited the company’s strong performance in the first quarter of 2025, which aligned with earlier preannouncements and exceeded initial expectations. With a market capitalization of $14.15 billion and a P/E ratio of 12.31x, the company maintains solid fundamentals. Baker’s analysis followed Dick’s Sporting Goods’ recent earnings call and his own subsequent discussions, addressing key topics such as the acquisition of FL, the impact of tariffs, and the company’s vendor relationships. InvestingPro data reveals the company has maintained dividend payments for 15 consecutive years, with impressive dividend growth of 21.25% in the last twelve months.

Baker also discussed the GameChanger business and Dick’s Sporting Goods’ guidance for 2025, which he considers conservative. Despite the lowered price target, Baker remains confident in the company’s valuation, suggesting that the recent pullback in stock price, particularly related to the FL acquisition, presents an attractive buying opportunity for investors. Trading near its 52-week low of $166.37, the stock has experienced a 22.15% decline year-to-date. According to InvestingPro’s comprehensive analysis, which includes 12 additional valuable insights available to subscribers, the company maintains a healthy financial position with a current ratio of 1.76.

The revised price target of $230.00 is based on a 15x multiple of the firm’s estimated earnings per share (EPS) for 2026. This adjustment reflects a recalibration of expectations while still expressing a positive outlook on the company’s future performance.

Dick’s Sporting Goods has been navigating various market challenges, including tariffs that have affected many retailers. However, the company has continued to maintain strong vendor relationships and has seen growth in its GameChanger business, which are factors that could contribute to its long-term success.

In conclusion, DA Davidson’s stance on Dick’s Sporting Goods remains bullish despite the reduced price target, signaling a belief in the company’s resilience and potential for growth in the coming years.

In other recent news, Dick’s Sporting Goods reported strong financial results for the first quarter of 2025, surpassing Wall Street expectations. The company achieved earnings per share of $3.37, exceeding the forecasted $3.20, and reported revenue of $3.17 billion, which also topped the anticipated $3.12 billion. This performance was driven by a 5.2% increase in consolidated sales and a 4.5% rise in comparable sales. In another development, Dick’s Sporting Goods announced its plans to acquire Foot Locker (NYSE:FL), a move expected to enhance its market presence and global reach. Analyst firms have adjusted their outlooks in light of these developments, with Morgan Stanley (NYSE:MS) maintaining an Overweight rating but lowering the price target from $255 to $232, while Truist Securities reduced the price target from $245 to $230, reiterating a Buy rating. Both firms highlighted the company’s strategic partnerships and initiatives as key growth drivers. Despite concerns over macroeconomic pressures, analysts remain optimistic about Dick’s Sporting Goods’ competitive advantages and growth potential.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.