The Dividend Daily

Janney Montgomery Scott reported on Monday that they have upgraded sporting goods retailer, Dicks Sporting Goods Inc(DKS) to a “Buy.”

The firm has increased their rating for DKS from “Neutral” to “Buy,” and has given the company a price target of $56. This price target suggests a 14% increase from the stock’s current price of $48.27.

An analyst from the firm commented, “recent share weakness (stock -6% vs. +4% for the S&P500 over the last month), owing we believe to more transitory issues (seasonal trade), has created an attractive entry point for a name that has ample growth opportunities and operational levers to drive solid earnings over the next several years.”

Although warm weather in December increased sales for the month, and may decrease the amount of upside in the next quarter, analysts see the company’s fundamentals to be strong in 2013.

Dicks Sporting Goods shares were up 30 cents, or 0.63% during premarket trading Monday. The stock has increased 38% in the past year.

The Bottom Line
Shares of Dick’s Sporting Goods (DKS) have a 1.04% dividend yield, based on Friday’s closing stock price of $47.97. The stock has technical support in the $42-$44 price area. If the shares can firm up, we see overhead resistance around the $50-$51 price levels.

Dick’s Sporting Goods (DKS) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.