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Pro Analysis

Dick's Sporting Goods to surge 32%: Goldman

A Dick's Sporting Goods store on May 20, 2014, in Niles, Illinois.
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A Dick's Sporting Goods store on May 20, 2014, in Niles, Illinois.

Investors should buy Dick's Sporting Goods on potential market-share gains due to the Sports Authority bankruptcy, according to Goldman Sachs.

"DKS is best positioned to benefit from store closures of its largest competitor, The Sports Authority (TSA)," Goldman Sachs' Stephen Tanal wrote in a note to clients Monday.

"We expect sharp acceleration in earnings growth in 4Q16, as DKS cycles an easy compare with the benefit of share gain from TSA, and further acceleration in 1Q-3Q17, when 'full run rate' TSA benefits compound margin gains from in-sourcing eCommerce next year."