TD Cowen cuts PT on sporting good retailers on falling demand

SHUI-MU International Co

19/05/2023 16:02

** Brokerage TD Cowen says demand for sporting goods has
started to fall significantly after a good start in January 2023
    ** TD Cowen cuts PT on specialty athletic retailers
including Dick's Sporting Goods Inc  DKS.N  to $160 from $175
and Academy Sports and Outdoors Inc  ASO.O  to $75 from $78
    ** DKS and ASO's sales fall by 5.4% in April, based on
report of U.S.Census Bureau, from a year ago - TD Cowen
    ** Brokerage expects gross margin of DKS to decline by 100
basis points (bps) and by 90 bps for ASO in Q1
    ** Shares of DKS fall as much as 6.8% to near three-month
low of $126.73, while ASO drop as much as 7.9% to near
four-month low of $53.64
    ** Dick's Sporting Goods is set to report Q1 earnings on May
23
    ** DKS has an average rating of "buy" among 27 analysts;
their median PT is $158.50 - Refinitiv
    ** ASO has an average rating of "buy" among 15 analysts;
their median PT is $75
    ** Shares of DKS up over 7%, ASO rises over 2% so far in
2023

 (Reporting by Anne Florentyna Gnanaraja Sekar in Bengaluru)
 ((AnneFlorentyna.GnanarajaSekar@thomsonreuters.com;))