Dick’s Sporting Goods stock upgraded by CFRA to Buy on athlete engagement

Investing.com - CFRA upgraded Dick’s Sporting Goods (NYSE:DKS) from Hold to Buy on Friday, raising its price target to $243.00 from $186.00. The stock, currently trading at a P/E ratio of 14.6x and showing strong returns over multiple timeframes according to InvestingPro data, appears to be trading above its Fair Value.

The research firm cited Dick’s strong athlete engagement and expectations of further market share gains as key factors behind the more bullish outlook, along with a more positive view of the approved Foot Locker deal.

CFRA acknowledged that Foot Locker’s weak second-quarter results have made the turnaround challenge appear more difficult compared to three months ago, and noted increased risk that the deal could be less accretive due to share price changes.

Despite these concerns, the firm expressed being impressed by Dick’s second-quarter results and believes the company’s guidance proved conservative, in line with expectations.

CFRA expects Dick’s athletes will remain well-positioned to engage and transact even at higher price points, lifting margin performance above expectations, which should offset dilution-related concerns from the pending Foot Locker closing.

In other recent news, Dick’s Sporting Goods reported stronger-than-expected earnings for the second quarter of 2025. The company achieved earnings per share of $4.37, surpassing forecasts of $4.30, and revenue reached $3.65 billion, exceeding the expected $3.61 billion. Despite these positive financial results, there are investor concerns about future challenges. UBS raised its price target for Dick’s Sporting Goods to $275 from $225, citing strong top-line and bottom-line growth and gross margin results that exceeded market expectations. DA Davidson also increased its price target to $250 from $230, highlighting stronger-than-expected comparable sales and an increase in gross margins. Additionally, Truist Securities raised its price target to $248 from $230, noting a solid second quarter for the retailer despite some concerns about gross margin commentary. These recent developments reflect the company’s robust financial performance and the positive outlook from analysts.

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