Dick's Sporting Goods' (DKS) confidence in Foot Locker's turnaround and core business strength allow investors to "remain on the fence" through H1, Truist Securities said in a Thursday note.
The company's 2026 outlook came in ahead of expectations, with comparable sales guidance of 2% to 4% for core brand and 1% to 3% for Foot Locker, versus investor expectations of 1% to 3% growth and flat growth, respectively, Truist said.
With the company's 2026 earnings per share guidance range of $13.50 to $14.50 coming below expectations of $14.75 to $15, Truist said that the company's estimate is based on a 91 million share count with no repurchases, which the brokerage expects to pick up through the year.
Truist maintained its buy rating and a $275 price target on the company's stock.
Price: 199.30, Change: +3.77, Percent Change: +1.93
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