On Monday, Loop Capital made an adjustment to the price target for Dick's Sporting Goods (NYSE:DKS), reducing it to $200 from the previous $220. The firm has maintained its Hold rating on the stock. The revision follows a comprehensive quarterly pricing study conducted by Loop Capital, comparing Dick's prices with those of various competitors in the sporting goods, apparel, and footwear sectors.
According to the study, Dick's Sporting Goods' products are, on average, 4.7% more expensive than those of its competitors. This price disparity is consistent with what was observed in February. Despite this, the total basket price differential between Dick's and its competitors has narrowed.
Loop Capital's decision to lower the price target is based on valuation concerns. The firm's analyst pointed out that while Dick's Sporting Goods retains a price premium over competitors, the valuation is a significant factor in the revised target.
In the broader context of the sporting goods retailing space, Loop Capital expressed a preference for Academy Sports and Outdoors, citing its substantially lower valuation compared to Dick's Sporting Goods. This preference is geared toward investors looking to invest in the retail sector that specializes in sporting goods.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.