Oppenheimer Maintains Cautious Stance On Dick’s Sporting Goods; Reduces PT To $42

In a research note released today, analyst Brian Nagel of Oppenheimer reiterated a Perform rating on Dick’s Sporting Goods (NYSE:DKS) and slightly reduced his price target to $42 (from $43), which represents a potential downside of 2% from where the stock is currently trading.

Nagel said, “We have for some time maintained a cautious stance on Dick’s Sporting Goods. A confluence of factors tarnishes our nearer term outlook for DKS. Ongoing issues in Golf and Outdoor are impacting traffic to the company’s large-format stores, and we believe together with more aggressive sector-wide promotions and a push by DKS online are leading the chain to step up its price discounts. DKS will report Q3 (Oct.) results in mid-Nov. In our view, despite cautious guidance from management, Street gross margin forecasts remain too optimistic. DKS has shown an ability to flex various P&L levers. A weaker than expected report and/or guidance will nonetheless undermine still optimistic sentiment.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Brian Nagel has a total average return of 1.5% and a 51.0% success rate. Nagel is ranked #1429 out of 3332 analysts.

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