CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
We raise our 12-month price target by $52 to $275, based on 19.8x our FY 27 EPS estimate and above the company's three- and five-year average forward P/E multiples of 13.8x and 12.4x, respectively. We maintain our FY 27 and FY 28 EPS estimates of $13.92 and $15.64, respectively. We raise our price target because we believe investors will begin to re-rate shares as profitability improves at Foot Locker and EPS growth accelerates in FY 28 and FY 29. DKS net sales increased to $5.16B, up 63% from the prior year quarter, $100M above consensus, with the DICK'S Business contributing $3.38B and the newly acquired Foot Locker Business adding $1.79B. The company delivered non-GAAP EPS of $2.90, down from $3.37 in the prior yea rand $0.01 below consensus, reflecting the dilutive impact of shares issued for the Foot Locker acquisition and integration costs. The DICK'S Business demonstrated robust performance with comparable sales growth of 6.0%, while Foot Locker increased 0.6%. We raise our price target and remain bullish.