Dick's (DKS) Stock Upgraded at RBC
Bloomberg News
NEW YORK (TheStreet) -- Dick's Sporting Goods (DKS) - Get Report stock rating was upgraded to 'outperform' from 'sector perform' at RBC on Thursday.
The firm raised its price target on shares of the Coraopolis, PA-based sporting goods retailer to $56 from $41.
Dick's stock could have several positive catalysts in the future, such as fewer disruptions from Sports Authority's liquidation and potential benefits from the liquidation next year, the Fly reports. In addition, Dick's is projected to spend less on e-commerce in 2017.
Dick's purchased Sports Authority's brand name and other intellectual property last month for $15 million, outbidding British sports retailer company Sports Direct International's (SDIPF) offer of $13 million.
RBC noted that Dick's is getting a free pass from investors this year, resulting in a positive risk to reward ratio, the Fly reports.
Shares of Dick's are up 3.5% to $50.39 this afternoon.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate DICKS SPORTING GOODS INC as a Hold with a ratings score of C+. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, weak operating cash flow and a generally disappointing performance in the stock itself.
You can view the full analysis from the report here: DKS
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