Dick's Sporting Goods (DKS): Thoughts Ahead of 2Q - Stifel

Stifel analyst, Jim Duffy, reiterated his Buy rating on shares of Dick\'s Sporting Goods (NYSE: DKS) and sees potential for a DKS relief rally on Tuesday’s 2Q report in consideration of bearish sentiment and our expectation for resilient fundamentals (positive comps, FCF yield approaching 10%).

The analyst stated "DKS is an inexpensive, out of favor stock, and the market is discounting a 2Q miss and sharp FY17 guide down. While not immune to headwinds (declining golf rounds played, firearms weakness, promotional apparel landscape, retail malaise, and competition), DKS shares offer favorable long-term risk/reward and may see short-term relief with the FY2Q report. Enduring relief, however, may prove challenging. Given the current cautious market sentiment on the retail category we expect the multiple remains under pressure".

No change to the price target of $54.

For an analyst ratings summary and ratings history on Dick\'s Sporting Goods click here. For more ratings news on Dick\'s Sporting Goods click here.

Shares of Dick\'s Sporting Goods closed at $36.91 yesterday.

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