Dick’s Sporting Goods stock holds Buy rating as Foot Locker deal nears

Investing.com - DA Davidson has reiterated its Buy rating and $230.00 price target on Dick’s Sporting Goods (NYSE:DKS) as the retailer’s acquisition of Foot Locker approaches completion. According to InvestingPro data, DKS maintains strong financial health with a "GOOD" overall rating, supported by a solid P/E ratio of 15.7 and a market capitalization of $18.1 billion.

The sporting goods retailer announced Wednesday that its Foot Locker acquisition is expected to close on September 8th, according to DA Davidson’s research note.

The firm noted that Dick’s Sporting Goods stock has performed in line with the market since the day before the deal was initially announced, suggesting investors have fully absorbed the news.

Based on Dick’s current share price of $227, DA Davidson pointed out that Foot Locker (NYSE:FL) shareholders would benefit more from converting their shares to 0.1168 shares of Dick’s Sporting Goods, which equates to $26.50 per share.

This share conversion option represents better value than the cash offer of $24 per share that was included in the acquisition terms, according to the research note.

In other recent news, Dick’s Sporting Goods and Foot Locker have announced that their merger is set to close on September 8, 2025, after clearing all regulatory hurdles. Foot Locker shareholders had previously approved the merger during a special meeting. Additionally, Dick’s Sporting Goods has extended the deadline for eligible holders to exchange Foot Locker’s 4.000% Senior Notes due 2029 to September 9, 2025.

In terms of analyst activity, Telsey Advisory Group raised its price target for Dick’s Sporting Goods to $255, maintaining an Outperform rating, citing strong consumer demand for athletic and outdoor products. Williams Trading also increased its price target to $210, while keeping a Hold rating, due to better-than-expected trends at the retailer. Similarly, TD Cowen raised its price target to $231, with a Hold rating, and noted that Dick’s Sporting Goods’ fiscal year 2025 guidance may see an upward revision following second-quarter results. These developments reflect the company’s ongoing strategic and financial adjustments.

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