DA Davidson Trims Dick’s Sporting Goods (DKS) Price Target, Maintains Buy Rating

DA Davidson trimmed its price target on Dick’s Sporting Goods Inc. (NYSE:DKS) to $230 from $273 on May 30, but maintained a Buy rating, citing strong Q1 results and a favorable valuation despite some near-term concerns. In a note to investors, the firm noted that the quarter came in line with the company’s preannouncement but surpassed original Wall Street expectations. DA Davidson continues to view the stock as undervalued, especially following a recent pullback tied to Dick’s planned acquisition of Foot Locker.

While the firm remains constructive on the long-term outlook, it did lower its assumed earnings multiple from 18x to 15x. This revision reflects broader pressure on retail valuations and perceived risks related to the Foot Locker deal, including integration challenges and potential dilution.

“The recent weakness in the stock offers an attractive entry point,” the note stated, emphasizing that the fundamentals remain intact and the acquisition could enhance Dick’s Sporting Goods Inc. (NYSE:DKS) market share over time if executed well. Despite the reduced target, DA Davidson’s confidence in the retailer’s positioning within the athletic and outdoor categories remains strong. The firm highlighted Dick’s operational consistency, brand partnerships, and customer loyalty as ongoing strengths.

While we acknowledge the potential of DKS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than DKS and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 12 AI Stocks on Latest News and Ratings and 10 AI Stocks on Wall Street’s Radar.

Disclosure: None.