DKS' Edge Over Peers: B Of A Analyst On Higher Household Income And Challenges Ahead In H2 Comps

B Of A Securities analyst is bullish on Dick's Sporting Goods Inc. DKS ahead of its Q2 earnings results and raised its price target to $180 from $170, maintaining the Buy rating.

The analyst raised Q2 EPS estimate to $3.83 (vs. consensus $3.82), now expecting same-store sales growth of +4.0% (vs. +2.0% earlier).

The same-store sales estimate is above the consensus of 2.5%, with street implying sequential acceleration on stronger transaction volume, which can negate slight deceleration in the average ticket.

The company will report Q2 results on August 22.

The analyst believes DKS has a stronger buffer vs. peers, given the higher median household income. 

However, DKS expects H2 comps at negative low-single-digits% given tougher comparisons as the company laps more normalized in-stock levels and strong back-to-school and holiday seasons.

Also Read: Dick's Sporting Goods: Winning The Retail Game, Says Analyst

Price Action: DKS shares are trading higher by 2.79% at $144.60 on the last check Monday.