Deutsche Bank Rates Dick's Sporting Goods (DKS) A Buy

Deutsche Bank Securities analysts Mike Baker and Adam Sindler rated shares of Dick's Sporting Goods Inc DKS a Buy, with a price target of $33 per share. The analysts said that Dick's Sporting Goods Inc executives attended the Deutsche Bank Retail 1 on 1 Day in San Francisco on May 25. One of the important takeaways from the event was that the running shoe business remains healthy. The analysts also said that Dick's Sporting Goods Inc did not see growth from its competitor The Sports Authority as a major competitive threat. The Deutsche Bank Securities analysts wrote, "gross margin opportunities include managing assortments at the store level and improving the mix at lower volume stores, both merchandising initiatives that are in the very early innings. On the product side, DKS sees margin opportunities in growing fitness categories that have very high margins as well as privately branded products, including golf balls. Above plan sales and gross margins should enable DKS to continue to invest in brand building marketing."