Truist Financial Maintains Buy Rating on Dick’s Sporting Goods (DKS)

On May 20, Truist Financial analyst Joseph Civello maintained a Buy rating on DICK’S Sporting Goods, Inc. (NYSE:DKS), with a $245.00 price target.

The rating came after DICK’S Sporting Goods, Inc. (NYSE:DKS) announced its preliminary Q1 2025 results and plans to acquire Foot Locker (NYSE:FL) on May 15.

A customer in a specialty concept store wearing a full outfit of apparels and sports gear.

The analyst said that the market’s initial reaction to the acquisition news was somewhat of an overreaction, as the stock took a notable hit after the announcement. He reasoned that the news of the acquisition has temporarily shifted the market sentiment to skepticism, stopping the positive momentum DICK’S Sporting Goods, Inc. (NYSE:DKS) was experiencing.

Civello said that the drop in the company’s market capitalization following the news was disproportionate, as he considers the acquisition to bring several benefits, including higher bargaining power with partners, expanded geographic reach, and access to new customer groups.

According to the analyst, DICK’S Sporting Goods, Inc. (NYSE:DKS) has an attractive growth narrative. Its financial performance corroborates this view, as it reported a comparable sales growth of 4.5% in fiscal Q1 2025, according to its preliminary results.

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Disclosure: None.