UBS reiterates Buy rating on Dick’s Sporting Goods stock with $225 price target

Published 01/07/2025, 12:46
UBS reiterates Buy rating on Dick’s Sporting Goods stock with $225 price target

Investing.com - UBS maintained its Buy rating on Dick’s Sporting Goods (NYSE:DKS) stock with a price target of $225.00, highlighting the retailer’s market share expansion opportunities. The stock, currently trading at $197.81 with a market cap of $15.83 billion, has shown strong momentum with a 11% gain over the past week. According to InvestingPro analysis, the company trades at an attractive P/E ratio of 13.7x relative to its growth potential.

According to Euromonitor data cited by UBS, Dick’s Sporting Goods currently holds approximately 5% of the sporting goods market, while Foot Locker (NYSE:FL) commands roughly 2% market share.

UBS identified several growth opportunities for Dick’s, including the potential to gain additional market share by leveraging customer relationships across both retail banners.

The financial firm also noted that increasing scale in the footwear category could provide Dick’s with greater influence, negotiating leverage, and control in what UBS describes as a "key traffic driving area" of the business.

UBS further suggested that streamlining the Foot Locker store base and recapturing market share through the Dick’s infrastructure could generate high contribution margins for the sporting goods retailer.

In other recent news, Dick’s Sporting Goods has been the focus of several analyst reports and market developments. UBS reiterated its buy rating with a $225 price target, citing significant upside potential despite market concerns about the Foot Locker acquisition. They project a potential 31% increase in share value, with a more optimistic scenario suggesting a 75% appreciation. DA Davidson also maintained a buy rating with a $230 price target, highlighting the positive impact of Nike (NYSE:NKE)’s strong performance on Dick’s Sporting Goods, especially as a key distribution partner in North America.

TD Cowen adjusted its price target to $205 while maintaining a Hold rating, noting gains in footwear market share but expressing caution due to uncertainties later in the year. Williams Trading echoed a cautious stance with a Hold rating and a $200 price target, pointing to potential distractions from the Foot Locker acquisition. Meanwhile, Citi maintained a Neutral rating with a $200 price target, acknowledging the company’s strong first-quarter performance and low earnings risk for the year. These developments reflect a varied outlook on Dick’s Sporting Goods as it navigates acquisitions and market dynamics.

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

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