NEW YORK (TheStreet) -- Shares of Dick's Sporting Goods (DKS) - Get Report were sliding early Wednesday morning as analysts at Goldman Sachs downgrade the stock to "neutral" from "buy," raising their price target to $61 from $56.
Before Tuesday's market open, Dick's reported better-than-expected earnings and revenue for the 2016 second quarter, and increased its full-year guidance.
Goldman Sachs said the stock's valuation has caught up with earnings forecasts, and the firm sees more limited upside from current share values, according to a note cited by the Fly.
Separately, analysts at Canaccord increased their price target on Dick's stock to $70 from $64 today. The firm also reiterated a "buy" rating on shares of the Coraopolis, PA-based sports retailer.
Canaccord called the results "stellar," largely driven by faster completion of now-bankrupt Sports Authority liquidations and a strong licensed business that benefited from the Cavaliers and Penguins championships.
"Importantly, we believe Q2 was just a sample of the long market share gain opportunity in front of Dick's as the stores that operated in the same market as closing Sports Authority stores outperformed the rest of Dick's fleet," the firm noted.
"We see upside to guidance as we believe the boost Dick's is getting from the Sports Authority sales recapture coupled with the Sports Authority IP/customer data that has yet to be leveraged is only going to boost comps at an accelerating pace," Canaccord added.
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 rated this stock as a "buy" with a ratings score of B.
The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income.
You can view the full analysis from the report here: DKS