Williams Trading maintains $200 PT on Dick’s Sporting Goods stock

Published 29/05/2025, 15:26
Williams Trading maintains $200 PT on Dick’s Sporting Goods stock

On Thursday, Williams Trading analyst Sam Poser reiterated a Hold rating on Dick’s Sporting Goods (NYSE:DKS) with a steady price target of $200.00. The company, currently valued at $14.35 billion with a P/E ratio of 12.5x, has seen its stock decline 22% year-to-date. Poser highlighted concerns regarding the company’s pending acquisition of Foot Locker (NYSE:FL), suggesting it could distract Dick’s Sporting Goods’ leadership despite management’s confidence. The analyst pointed out that operating an athletic specialty retailer that caters to fashion lifestyle consumers, especially those located in malls or urban areas, falls outside of Dick’s core competencies.

Dick’s Sporting Goods has reported strong trends for the first quarter of 2025, with revenue growth of 3.53%, and it appears this momentum is carrying into the second quarter. The company has maintained its guidance, which already accounts for the expected impact of tariffs as of yesterday. According to InvestingPro, the company maintains a "GOOD" financial health score, with liquid assets exceeding short-term obligations and moderate debt levels. InvestingPro analysis suggests the stock is currently trading above its Fair Value, with 10 additional ProTips available to subscribers. A recent development that could potentially benefit Dick’s Sporting Goods and other retailers is the Court of International Trade’s decision to strike down reciprocal tariffs instituted on Liberation Day (April 2nd).

Although the presidential administration plans to appeal the court’s ruling, and there may be other avenues for the president to implement tariffs, the current court decision stands as positive news for companies like Dick’s Sporting Goods. This comes in the context of President Trump’s remarks on May 25th, where he stated, "we’re not looking to make sneakers and t-shirts" in the U.S., which suggests a shift away from domestic manufacturing for such products.

In other recent news, Dick’s Sporting Goods reported a strong performance for the first quarter of 2025, surpassing Wall Street expectations. The company achieved earnings per share (EPS) of $3.37, exceeding the projected $3.20, and reported revenue of $3.17 billion, which was above the anticipated $3.12 billion. Despite facing higher tariffs, the company maintained its full-year EPS guidance between $13.80 and $14.40. Analysts from Citi, DA Davidson, Morgan Stanley (NYSE:MS), and Truist Securities provided their assessments, with some adjusting their price targets for the company. DA Davidson and Truist Securities both reduced their price targets to $230 while maintaining a Buy rating, citing the company’s strong quarterly performance and potential growth opportunities. Morgan Stanley also lowered its target to $232 but retained an Overweight rating, optimistic about the company’s strategic initiatives. The recent acquisition of Foot Locker remains a topic of interest, with analysts noting limited new information on its integration strategy. Despite these challenges, Dick’s Sporting Goods continues to expand its market presence and strengthen its vendor relationships.

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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