UBS upgraded Dick’s Sporting (DKS) to Buy from Neutral with a price target of $260, up from $225. Dick’s will generate more sustainable earnings growth moving forward than it has in the past, and this has not been fully reflected in the stock, the analyst tells investors in a research note. UBS models 8% annual earnings growth over the next five years, which compares to an average of 5% growth for the five years prior to the pandemic. Dick’s has been structurally improved in recent years, which will pay dividends in the form of higher margins, free cash flow generation and returns for the foreseeable future, contends UBS.
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