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How 2 Dick's Sporting Goods Analysts Reacted To Retailer's Q2 Beat

Chris Katje

One Dick’s Sporting Goods (NYSE: DKS) analyst issued an upgrade and another a downgrade following the retailer's second-quarter earnings report.

The Dick's Sporting Goods Analysts: Oppenheimer analyst Brian Nagel downgraded Dick's Sporting Goods from Outperform to Perform and raised the price target from $52 to $56. 

Morgan Stanley analyst Simeon Gutman upgraded the stock from Equal-weight to Overweight and raised the price target from $40 to $65. 

The Dick's Sporting Goods Takeaways: Oppenheimer believes shares are now fully valued thanks to a 220% increase from their late March bottom, Nagel said in a Thursday downgrade note. 

Oppenheimer upgraded the stock in June when shares were trading for less than $40 on the premise that the company could weather COVID-19 headwinds and was cheap on a valuation basis, the analyst said. 

Morgan Stanley's Gutman said Dick’s Sporting Goods is staging a second-half comeback and has more upside ahead. 

The retailer has underappreciated earnings per share power and an inexpensive valuation, the analyst said.

View more earnings on DKS

Dick's Sporting Goods could see 10% earnings per share growth through 2022, he said.

Morgan Stanley's new $65 price target is based on a multiple of 12.5 times 2022 earnings per share of $5.15. 

DKS Price Action: Dick's Sporting Goods shares were down 1.78% at $53 at the close Thursday. 

Benzinga’s Take: Dick’s Sporting Goods reported a 20.1% increase in sales for the second quarter. The quarter was highlighted by e-commerce growth of 194%. That segment made up 30% of total sales versus 12% in the prior year.

The first three weeks of the third quarter have seen same-store sales growth of 11%.

Related Link: Recap: Dick's Sporting Goods Q2 Earnings

Photo by Mike Mozart via Wikimedia. 

Latest Ratings for DKS

Date

Firm

Action

From

To

Aug 2020

Barclays

Maintains

Overweight

Aug 2020

UBS

Maintains

Neutral

Aug 2020

B of A Securities

Maintains

Buy

View More Analyst Ratings for DKS
View the Latest Analyst Ratings

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