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Investing.com - DA Davidson maintained its buy rating and $230.00 price target on Dick’s Sporting Goods (NYSE:DKS) stock on Friday. The stock, currently trading at a P/E ratio of 13.7x and offering a 2.48% dividend yield, has shown strong momentum with a 12.9% gain over the past week. According to InvestingPro data, analyst targets for DKS range from $158 to $270.
The research firm cited Nike (NYSE:NKE)’s fourth-quarter fiscal 2025 results, which exceeded expectations for sales and earnings per share, while gross margins were in line with forecasts. Nike provided mixed guidance for its first quarter of fiscal 2026, with better revenue projections but worse margin expectations. Dick’s Sporting Goods, with annual revenue of $13.6 billion, maintains strong financial health according to InvestingPro’s comprehensive analysis, which reveals 12 additional key insights available to subscribers.
DA Davidson noted the results were "mostly positive" for Dick’s Sporting Goods as Nike’s wholesale business within North America continues to outperform Nike’s direct business in the region. Nike emphasized growth in its North American holiday wholesale orderbook on a year-over-year basis, which the firm called "an inflection point" demonstrating momentum in that segment.
The research firm highlighted that Dick’s Sporting Goods currently accounts for 18% of Nike’s North American wholesale business. This percentage is expected to increase to approximately 36% once Foot Locker (NYSE:FL) is included.
The maintained buy rating comes as Dick’s Sporting Goods continues to strengthen its position as a key distribution partner for Nike in the North American market.
In other recent news, Dick’s Sporting Goods reported strong financial performance for the first quarter, with earnings per share (EPS) of $3.37, surpassing market expectations. The company saw a 4.5% increase in comparable store sales, driven by a rise in average ticket prices and transaction volume. Analysts from Citi and DA Davidson acknowledged the company’s robust performance, with Citi maintaining a Neutral rating and DA Davidson keeping a Buy rating, despite both firms adjusting their price targets. Meanwhile, TD Cowen reduced its price target to $205, maintaining a Hold rating, citing potential uncertainties in the latter half of the year. Williams Trading also reiterated a Hold rating, expressing concerns over Dick’s pending acquisition of Foot Locker, which could be a potential distraction for the company. Morgan Stanley (NYSE:MS) adjusted its price target to $232, maintaining an Overweight rating and highlighting the company’s strategic partnerships and customer engagement efforts. The recent court decision to strike down tariffs is seen as a positive development for retailers like Dick’s Sporting Goods, though the presidential administration plans to appeal. Overall, analysts have differing views on the company’s future prospects, with some expressing optimism about its strategic initiatives and others taking a more cautious approach.
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