Home / Business and Economy / Baird Upgrades Dick's Sporting Goods: $253 Target
Baird Upgrades Dick's Sporting Goods: $253 Target
11 Feb
Summary
- Baird upgraded Dick's Sporting Goods to outperform with a $253 price target.
- Analyst sees a multi-year earnings story with near-term cyclical momentum.
- Dick's revenue is up 60% and earnings have risen 2.8 times since pre-Covid.
Baird has upgraded Dick's Sporting Goods (DKS) to an outperform rating, raising its price target to $253 from $230. Analyst Jonathan Komp highlighted the company as a "multi-year earnings power story with near-term cyclical torque." He introduced earnings targets of $15 per share for 2026 and $18 per share for 2027.
The firm's bullish outlook is underpinned by Dick's substantial growth, with revenue up approximately 60% and earnings 2.8 times higher compared to pre-Covid levels. This impressive performance is attributed to the company's expanding scale, healthy categories, and effective execution, particularly with key brands.
Baird is optimistic about a multi-year recovery at Foot Locker, which is expected to benefit Dick's, especially as Nike shows signs of a turnaround. Additional positive factors include potential macroeconomic catalysts like increased tax refunds and Dick's leading position within the attractive U.S. sporting goods market, estimated at $140 billion.
Komp sees significant potential for Dick's to grow its current 14% market share. Future growth drivers also include expanding youth and women's sports participation, along with advancements in adult recreational sports. The company plans to further develop its vertical brands and invest in technology to enhance the in-store customer experience.
