DICK’S Sporting Goods Inc.(DKS:NYE) Robert W. Baird lowers the target price to $85

Robert W. Baird maintains DICK’S Sporting Goods Inc. with a Neutral rating and lowers the target price to $85 from $115 on the company’s stock.
Based on the DICK’S Sporting Goods Inc stock forecasts from 14 analysts, the average analyst target price for DICK’S Sporting Goods Inc is USD 123.64 over the next 12 months. DICK’S Sporting Goods Inc’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of DICK’S Sporting Goods Inc is Bullish , which is based on 12 positive signals and 2 negative signals. At the last closing, DICK’S Sporting Goods Inc’s stock price was USD 78.14. DICK’S Sporting Goods Inc’s stock price has changed by -1.49% over the past week, -24.03% over the past month and -7.16% over the last year.
What we like:
Superior risk adjusted returns
This stock has performed well, on a risk adjusted basis, compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile.
Superior total returns
The stock has outperformed its sector peers on average annual total returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile.
Underpriced compared to earnings
The stock is trading low compared to its peers on a price to earning basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.
Superior return on equity
The company management has delivered better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.
Superior capital utilization
The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.
Superior return on assets
The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.
Positive cash flow
The company had positive total cash flow in the most recent four quarters.
Positive free cash flow
The company had positive total free cash flow in the most recent four quarters.
Underpriced on free cash flow basis
The stock is trading low compared to its peers on a price to free cash flow basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.
Superior Earnings Growth
This stock has shown top quartile earnings growth in the previous 5 years compared to its sector.
Superior Revenue Growth
This stock has shown top quartile revenue growth in the previous 5 years compared to its sector.
Superior Dividend Growth
This stock has shown top quartile dividend growth in the previous 5 years compared to its sector
What we don’t like:
High volatility
The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.
Highly leveraged
The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.