Dick's Sporting Goods price target raised on shopper preferences

By Liz Moyer

Investing.com -- Dick’s Sporting Goods Inc (NYSE:DKS) is gaining share from retail competitors, especially among higher income consumers and women, according to analysts at Cowen, which raised its price target on the stock.

Cowen stock analysts raised their price target to $166 a share from $155. They rate the stock an outperform.

Dick's performs well in consumer surveys that ask shoppers where they prefer to shop for sporting goods, the Cowen analysts said in a note on Monday. The firm’s Consumer Tracker survey found that Dick's preference share reached 36% in November and December. That was enough to put it ahead of Amazon.com Inc (NASDAQ:AMZN).

The analysts also said they believe Dick's took share from a combination of Amazon, REI and Zappos in 2022 “and is improving most rapidly in the survey with higher income consumers and women.”

Cowen’s new price target implies 23% upside from current levels. The stock was up earlier to hit a new 52-week high but is trading 0.7% lower as of midday. Dick's shares are up 12% so far this year.

The analysts added that their Cowen Consumer Tracker survey suggests Dick's is gaining share in the sneaker category, helped by “improving allocations of product from Nike (NYSE:NKE) and Adidas (OTC:ADDYY).” 

Cowen is estimating fiscal year 2023 sales to grow to $12.8 billion from $8.75B in fiscal year 2019. It also sees fiscal year 2023 earnings per share of $13.79, versus the consensus $12.09 a share.