Analyst expects online efforts to help Dick's
(Associated Press Via Acquire Media NewsEdge) NEW YORK (AP) — Shares of Dick's Sporting Goods Inc. are likely to rise over the next several quarters, an analyst said Thursday, as the retailer benefits from online growth and in-store actions.
Eric Tracy of Janney Capital Markets said in a client note that Dick's online sales are not only helping its revenue but also providing a way for the chain to defend itself — and possibly gain market share — against online rivals. The analyst also believes that in-store efforts, such as adding more sales associates, remodeling stores and providing shop-in-shops, are positive catalysts.
Tracy reiterated a "Buy" rating and increased Dick's price target to $57 from $55.
Its stock added 58 cents to $53.29 in Thursday afternoon trading.
Separately, Sterne, Agee & Leach's Sam Poser said that Dick's, which held an analyst meeting Wednesday, is looking to replace slow moving items in its stores, like fitness equipment and golf equipment, with faster moving, higher-margin products such as women's clothing, youth clothing and licensed products.
The analyst also sees the company's new Field & Stream stores — which will sell hunting, camping and fishing gear — as a potential opportunity for growth. Poser said he was impressed with the product assortment and customer service at the first store in Cranberry, Pa. He anticipates Dick's reducing the amount of hunting, camping and fishing items in its namesake stores if Field & Stream does well, which would give it the opportunity to add more higher-margin clothing products.
Poser kept a "Buy" rating and $58 price target.
Dick's, based in Pittsburgh, operates more than 500 stores nationwide.
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