Argus Raises Dick's Sporting Goods Price Target Following Strong Q1 Earnings

Argus analysts increased their price target for Dick's Sporting Goods (NYSE:DKS) to $252 from $240, while maintaining a Buy rating.

The analysts' update follows stronger-than-expected Q1 earnings for Dick's Sporting Goods. They raised the fiscal 2025 EPS estimate to $13.40 from $13.10, with a slight increase in Q2 estimate due to higher sales. Q3 and Q4 estimates remain unchanged. The consensus estimate stands at $13.75. Additionally, the analysts increased the 2026 EPS estimate to $14.40 from $14.00, reflecting an anticipated 3% rise in comparable sales, a reduction in share count, and an improved gross margin estimate.

The analysts also highlighted their visit to a recently remodeled Dick's Sporting Goods store, where they were impressed by the enhanced shopping experience, which includes features like a golf simulator and batting cage. These new store formats provide a better platform for manufacturers to showcase their products based on performance rather than price alone.

In the company's Annual Report, Dick's Sporting Goods noted a recent 10% increase in the quarterly dividend, underscoring their strong confidence in the business and commitment to delivering shareholder value. Over the past five years, the company has raised the dividend at a compound annual rate of 32%.