Deutsche Bank Reports on Dick's Sporting Goods (DKS)

In a report released today, Deutsche Bank commented on Dick's Sporting Goods (NYSE: DKS). In the report, Deutsche Bank was positive in its outlook of the company.

Deutsche Bank writes, “EPS was $0.30 versus consensus of $0.29 and guidance of $0.26-$0.28. Comps were 2.1% versus estimates in the 5% range. Given the weak comps from other retailers with heavy spring seasonal businesses, we assume the weak sales were due to weather. The beat was on gross margin and SG&A. Gross margin was up 82 bps versus our estimate of 66 bps. We believe the stock is likely to be off today, but we remain buyers for two reasons. First, we believe the weakness this quarter is due to weather and that business is likely to rebound. Secondly, the guidance looks conservative and we note that DKS has now beaten its EPS guidance in each of the past nine quarters.”

Deutsche Bank currently has a Buy rating on DKS and a price target of $46. Shares of DKS closed the trading day at $40.69, down from the opening bell at $42.19.