NEW YORK (TheStreet) -- Shares of Dick's Sporting Goods (DKS) - Get Report are advancing 4.12% to $41.74 in late-afternoon trading on Tuesday after Goldman Sachs added the sporting goods retailer to its "Conviction Buy List."
The firm set a $53 price target on the stock, representing 29% upside to current levels.
Few companies have offered to purchase the 463 stores that Sports Authority has put up for sale after filing for bankruptcy in March, the firm pointed out in a note cited by Fortune. This is a positive for Dick's, which has reportedly submitted a bid for 17 of Sports Authority's leases.
Dick's is consequently poised to steal market share from what was once its largest competitor, Goldman Sachs said.
"We expect sharp acceleration in earnings growth in the fourth quarter of 2016, as Dick's cycles an easy compare with the benefit of share gain from Sports Authority, and further acceleration in [the first three quarters of 2017], when 'full run rate' Sports Authority benefits compound margin gains from in-souring eCommerce next year," the firm wrote, according to Fortune.
Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C+.
Dick's strength such as its revenue growth, reasonable valuation levels and largely solid financial position with reasonable debt levels by most measures are countered by 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
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 article's author.