Dick’s Sporting Goods Stock Gains Even As Truist Lowers Target, Warns Foot Locker Deal Remains A Drag

Shares of Dick’s Sporting Goods (DKS) climbed on Wednesday afternoon despite Truist lowering its price target by $15, flagging lingering investor caution over the company’s planned deal with Foot Locker and economic risks in the second half of the fiscal year. 

Truist trimmed its price target to $230, down from $245, and maintained a ‘Buy’ rating on the shares, as per TheFly.

According to the brokerage, the company’s first-quarter results and full-year guidance met or slightly exceeded expectations, but the planned acquisition of Foot Locker (FL) remains an overhang.

Truist noted ongoing concerns about macroeconomic pressures in the second half of 2025. It While investors may need more time to assess the Foot Locker deal, Truist expects Dick’s competitive strengths to continue supporting the stock.

Dick’s Sporting Goods Executive Chairman Edward Stack said during the company’s earnings call on Wednesday that the deal is expected to generate synergy gains of $100 million to $125 million over the medium term. 

The Foot Locker deal is expected to allow Dick’s Sporting Goods to enter international markets for the first time. The transaction is expected to close in the second half of the year. 

The sporting goods giant also reaffirmed its full-year guidance, including the expected impact of all current tariffs. However, the outlook does not account for acquisition-related costs, investment costs, or results from the Foot Locker acquisition.

Dick’s Sporting Goods reported earnings per share (EPS) of $3.37, beating analyst estimates of $3.21, according to Koyfin data.

Its revenue rose 5% year-on-year, coming in at $3.17 billion, above the Wall Street estimate of $3.12 billion. 

Comparable sales rose 4.5% in the first quarter (Q1), marking the fifth straight quarter of over 4% growth, driven by omnichannel experience and product assortment. 

Dick’s Sporting Goods stock was up 1.7% in afternoon trade on Wednesday. The shares are down 23% this year, and have fallen over 7% in the past 12 months. 

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