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Fly News Breaks for February 5, 2018
BBY, DKS
Feb 5, 2018 | 05:17 EDT
Barclays analyst Matthew McClintock downgraded Dick's Sporting Goods (DKS) to Underweight and cut his price target for the shares to $25 from $33. Sentiment on the shares have improved over the past month under the narrative that Dick's could become the next Best Buy (BBY), McClintock tells investors in a research note. The analyst, however, sees few, if any, similarities between the two companies. He questions how the Dick's business model of a "physical sporting goods box with a sparse labor model and no treasure hunt aspects will remain relevant as changing consumer preference." The company is facing accelerating competitive pressures in apparel and has substantial exposure to weak hunting trends, McClintock adds.
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