Analyst lifts Dick's Sporting Goods rating

AP News
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Posted: Dec 21, 2009 10:51 AM

Shares of Dick's Sporting Goods Inc. climbed Monday as an analyst said the sporting goods retailer is likely to top its conservative fourth-quarter earnings forecast on solid traffic and raised its rating and price target.

"Our channel checks indicate both traffic and conversion have been surprisingly strong heading into the holidays. We believe the recent cold weather in the Northeast and Midwest has been favorable for apparel sales and winter related categories," Camilo Lyon of Wedbush wrote in a client note.

The analyst also suspects that golf clearance is tapering off, with leaner inventories heading into 2010.

Dick's, based in Pittsburgh, anticipates fourth-quarter earnings of about 41 cents to 46 cents per share.

Lyon boosted Dick's to "Outperform" from "Neutral" and increased its price target to $29 from $24.

The company's stock added $1.09, or 4.6 percent, to $24.76 in morning trading. The shares have traded between $10.26 and $26 over the last year.