Dick's Sporting Goods comps accelerated through second quarter - BofA
The Dick's Sporting Goods (NYSE:DKS) price target was raised to $180 from $170 at BofA on Monday, with analysts maintaining a Buy rating on the stock ahead of its earnings release on August 22.
As of 10:55 ET (14:55 GMT) on Monday, DKS shares are trading 2.92% above Friday's close at $144.79 per share.
«We raise our 2Q EPS estimate to $3.83 (vs. consensus $3.82), as we now expect same-store sales growth of +4.0% (from +2.0%),» wrote the analysts.
The firm believes «Dick's Sporting Goods & Going, Going, Gone! branded doors outperformed Golf Galaxy during the quarter, suggesting some pressure in big-ticket in the quarter.»
Furthermore, the analysts stated that by month, they believe DKS comps accelerated through the quarter, with July performing the strongest, suggesting momentum ahead of Back-to-School.
«We see some exposure from the resumption of student loan repayments, as 65% of DKS customers have some form of higher education, according to Placer, but we believe DKS has a stronger buffer compared to peers incl. HIBB (Hibbert Sports) and ASO (Academy Sports & Outdoors) given higher median household income,» they wrote.
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