M.Organ Stanley raised its stock price forecast for Dick’s Sporting Goods from $ 93 to $ 115, saying it is entirely driven by a 30% increase in its ’22 EPS estimate of $ 7.60.
Late last month, Dick’s announced that its first quarter net income had increased to $ 361.8 million, or $ 3.41 per share, after a loss of $ 143.4 million, or $ 1.71. Dollars per share last year. The company announced that its adjusted earnings per share (EPS) was $ 3.79 per share, beating Wall Street’s consensus estimate of $ 1.12 per share.
The Coraopolis, Pennsylvania-based company said sales rose 119% to $ 2.92 billion, beating estimates of $ 2.18 billion. On a two-year basis, sales increased 52%.
“We are rated ‘overweight’. We see Dick’s Sporting Goods (DKS) as a structurally higher margin business with faster growth after COVID-19. From our point of view, this justifies a middle to high tens. We raised our target price to $ 115, ”said Simeon Gutman, Morgan Stanley equity analyst.
Dick’s Sporting Goods stocks are up over 70% so far this year.
Twenty analysts who have given stock ratings on Dick’s Sporting Goods in the past three months are forecasting the 12-month average price at $ 103.22 with a high forecast of $ 142.00 and a low forecast of $ 78.00.
The average target price corresponds to an increase of 5.90% compared to the last price of USD 97.47. According to Tipranks, 11 of these 20 equity analysts rated “Buy”, eight “Hold” and one “Sell”.
Morgan Stanley put the bull-case scenario target price of $ 150 and the worst-case scenario forecast of $ 60.
“Dick’s Sporting Goods (DKS) is in a favorable position given its category dominance, industry tailwind and healthy track record. The outlook within the category should be even stronger after COVID-19. We see a positive risk / return skew because we underestimated the profitability of the business. The main drivers include the increase in trading margin and the return on investment (buybacks). We believe there is upside for the stock without drawing a higher valuation multiple, ”added Gutman of Morgan Stanley.
“The multiple of the share did not break out like other retailers in our area, which should get stronger after COVID-19. The potential for multiple expansion adds optionality / benefit to the bull case. “
Other equity analysts recently updated their equity outlook as well. Stephens raised the price target from $ 74 to $ 95. CFRA raised its target price by $ 30 to $ 110. UBS raised its target price from $ 90 to $ 107.
Telsey Advisory Group raised its target price from $ 98 to $ 113. Wedbush raised its target price from $ 97 to $ 110. Stifel raised the price target from $ 71 to $ 98. Citigroup has raised its target price from $ 90 to $ 128.
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