Dick's Sporting Goods upgraded to "strong buy" - update

11/15/06 - Wedbush Morgan Securities

NEW YORK, November 15 (newratings.com) - Analyst Sean McGowan of Wedbush Morgan upgrades Dick's Sporting Goods (DKS) from "buy" to "strong buy," while raising his estimates for the company. The 12-month target price has been raised from $60 to $64.

In a research note published yesterday, the analyst mentions that the company has reported its 3Q06 results ahead of the consensus, boosted by a healthy sales, gross margin, operating expense and interest expense performance. The acquisition of Golf Galaxy is expected to be accretive in 2007, the analyst says. The EPS estimates for 2006, 2007 and 2008 have been raised from $1.90 to $2.00, from $2.30 to $2.40 and from $2.75 to $2.90, respectively.