Analyst upgrades Dick's Sporting Goods on long-term growth prospects
An analyst upgraded shares of Dick's Sporting Goods (NYSE: DKS) to "Outperform" from "Neutral" on Aug. 19, based on the stock's valuation and long-term growth prospects at the company.
J. David Cumberland, an analyst with Robert W. Baird & Co., wrote in a client note that Dick's shares have plunged 43.5 percent so far in fiscal 2008, while the S&P retail index has fallen 7.2 percent in the same period.
Cumberland also said contracts with suppliers and planned store openings signal that the company is in a good position, relative to its competitors. He also noted the possibility of greater interest in physical activities from consumers who watched the Olympics.
"Following the slowdown, we expect Dick's to appeal to investors as a high-quality retailer with a long-term profile of double-digit store growth, positive comps, margin improvement, and high-teens EPS growth," he wrote.
The company is slated to report its second-quarter earnings on Aug. 21. The analyst expects Dick's to report a profit of $0.36 per share -- in line with Wall Street's average estimate.
Cumberland has a $25 price target on the stock, implying upside of 34.3 percent over its closing price on Aug. 18 of $18.62.
Dick's slid $0.34 to close at $18.28 on Aug. 19.
Foot Locker declares quarterly dividend
Foot Locker's (NYSE: FL) board of directors declared a quarterly cash dividend on the company's common stock of $0.15 per share. It is payable on Oct. 31 to shareholders of record on Oct. 17.
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