Williams Trading has adjusted its outlook on Dick’s Sporting Goods (DKS, Financial), downgrading the stock from a Buy to a Hold while reducing its price target to $200 from the previous $243. This revision reflects a more cautious view on the sector amid concerns about the impact of increased tariffs.
According to the firm, uncertainties surrounding the 145% tariff on Chinese goods have disrupted product shipments to the United States, posing significant challenges to retail brands dependent on China. These tariffs are expected to pressure margins and complicate pricing strategies, potentially stifling demand.
Williams Trading has also lowered its price-to-earnings multiple estimates across its retail sector coverage by an average of 20.4%. The firm suggests that companies within its coverage area might either refrain from issuing forward guidance or retract existing guidance, given the current market unpredictability.
For Dick’s Sporting Goods, in particular, the forecast is concerning. The retailer is expected to fall short of its annual same-store sales and earnings guidance. This anticipated shortfall is attributed to declining store traffic and the burden of increased costs, especially affecting its hard goods and equipment categories, much of which are sourced from China.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 22 analysts, the average target price for Dick's Sporting Goods Inc (DKS, Financial) is $231.83 with a high estimate of $273.00 and a low estimate of $138.06. The average target implies an upside of 29.67% from the current price of $178.79. More detailed estimate data can be found on the Dick's Sporting Goods Inc (DKS) Forecast page.
Based on the consensus recommendation from 29 brokerage firms, Dick's Sporting Goods Inc's (DKS, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Dick's Sporting Goods Inc (DKS, Financial) in one year is $182.66, suggesting a upside of 2.16% from the current price of $178.79. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Dick's Sporting Goods Inc (DKS) Summary page.
