Oppenheimer Lifts DKS Rating From Perform To Outperform, Establishes $50 PT

Oppenheimer is lifting its rating on Dick's Sporting Goods (NYSE: DKS) to Outperform from Perform and establishing an initial price target at $50, “which suggests upside of nearly 25%.”

“DKS is a leading purveyor of sporting goods and one of the best managed domestic retail chains,” Oppenheimer writes. “Sales and EPS trends have improved significantly in the past several quarters as discretionary spending has recovered. Shares have responded. We think the DKS story is by no means over.

“DKS is very well positioned to capitalize on the recent wave of new product innovation in the sporting goods category and the company is still in the early stages of a national rollout. We believe that the market continues to underestimate both the near- and longer-term EPS potential of DKS.”

Dick's Sporting Goods currently trades at $40.25.