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Actionable news in DKS: DICK'S SPORTING GOODS Inc,

Goldman Highlights Diverging Fundamentals In Sporting Goods Group

Goldman Sachs picked up Dicks Sports Goods Inc DKS 0.24% and Sportsman's Warehouse Holdings Inc SPWH 0.47% in the Buy list in the sporting goods segment, and dumped Hibbett Sports, Inc. HIBB 5% with a Sell rating.

The comments from the analysts came ahead of these companies' results for the second quarter.

The firm picked up the two stocks based on the improved investment sentiments in the retail space in recent weeks. The optimism was fueled by the Sports Authority closure resulting in a sharp inflection in BGFV's sales. The brokerage believes Dicks has already gained share. Aside from that, gun sales are booming based on his check to drive the results.

According to the analyst, "DKS looks best positioned, while HIBB is unlikely to see much of an impact in its results. We also detail DKS' overlap with Golfsmith within. DKS: Poised to benefit from rival's demise." The analyst retained a Conviction List-Buy and $52 price target.

As far as Sportsman is concerned, Goldman Sachs expects a Q2 beat pointing out the firearm sales. The brokerage also expects the company's EPS to exceed in the second half of the current year. It reiterated its Buy rating and $15 price tag.

On the other hand, analyst sees a traffic drop in Hibbett, driving the company to report a shortfall in the second quarter.

DateFirmActionFromTo
Aug 2016SusquehannaInitiates Coverage onPositive
Aug 2016UBSMaintainsBuy
Aug 2016Goldman SachsMaintainsBuy

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