- Telsey Advisory Group Analyst Joseph Feldman further lowered the price target Dick’s Sporting Goods Inc DCS from $153 to $125 (up 65%) and maintained an Outperform rating on the shares.
- The analyst expects a challenging first quarter for DKS as it faces a shift in consumer spending away from discretionary categories, increased freight costs and higher wages.
- Meanwhile, Feldman believes DKS will benefit from strong demand for fitness and outdoor gear, as well as athletic apparel and footwear, as team sports return and consumers prioritize healthy lifestyles, outdoor activities and comfortable clothing.
- He sticks to a 1Q22 EPS estimate of $2.33 and expects operating margin to shrink 475 basis points to 11.6% amid higher supply chain costs and promotions.
- Price promotion: DKS shares are trading down 2.53% at $75.56 on the latest check Monday.
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