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Investing.com - TD Cowen has raised its price target on Dick’s Sporting Goods (NYSE:DKS) to $233.00 from $231.00 while maintaining a Hold rating on the stock. Currently trading at $208.69, DKS shows a broader analyst target range of $165 to $275, with InvestingPro data indicating the stock is trading above its Fair Value.
The firm’s analysis includes a pro forma FY26 model for the combined company following Dick’s acquisition of Foot Locker, assuming Dick’s same-store sales growth of 3% while Foot Locker experiences a 2% decline as Dick’s management works to reset the Foot Locker business. With a market capitalization of $16.68 billion and an overall financial health score rated as "GOOD" by InvestingPro, DKS maintains strong fundamentals.
TD Cowen projects earnings per share of $14.45 for FY26, representing a 1% year-over-year decline, which falls below the current consensus estimate of $15.31.
The firm cited potential for FY26 earnings to come in below consensus estimates due to a higher equity mix of financing and uncertainty surrounding Foot Locker’s turnaround as reasons for maintaining its Hold rating.
The new $233 price target represents 14 times TD Cowen’s pro forma FY27 estimated earnings per share and approximately 8 times enterprise value to EBITDA.
In other recent news, Dick’s Sporting Goods reported stronger-than-expected earnings for the second quarter of 2025. The company’s earnings per share (EPS) came in at $4.37, surpassing the anticipated $4.30, and revenue reached $3.65 billion, exceeding the forecast of $3.61 billion. Several analyst firms have responded positively to these results. CFRA upgraded Dick’s Sporting Goods from Hold to Buy, citing strong athlete engagement and market share gains, and raised its price target to $243. UBS maintained a Buy rating and increased its price target to $275, highlighting the company’s top-line and bottom-line growth. DA Davidson also maintained a Buy rating, raising its price target to $250 due to stronger-than-expected comparable sales and increased gross margins. Similarly, Truist Securities raised its price target to $248, despite some concerns about gross margin commentary. These developments reflect analysts’ confidence in Dick’s Sporting Goods’ recent performance and future prospects.
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