Dick’s Sporting Goods Inc. was downgraded to neutral from buy at Goldman Sachs on concerns surrounding share gains the retailer will make following The Sports Authority’s bankruptcy. Goldman Sachs removed Dick’s from its Conviction List and lowered the price target to $56 from $61. “Second quarter results already included a net benefit from The Sports Authority – notably late in the quarter – in the final weeks of The Sports Authority’s going-out-of-business sales as the ‘good stuff’ had been liquidated early on, per Dick’s,” analysts wrote in a Wednesday note. “It is only now going through The Sports Authority’s customer lists, and hopes these efforts will bear fruit in the fourth quarter with some potential help in the third quarter.” There’s uncertainty around share gains from the back-to-school season, and Goldman analysts “see upside to the stock as more limited from here.” Dick’s shares are inactive in premarket trading, but up 63% for the year to date. The S&P 500 Index is up 6.8% for the year so far.
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