12:23 PM EDT, 04/29/2024 (MT Newswires) -- Dick's Sporting Goods (DKS) could see limited earnings upside this year as sales could slow and planned investments may pressure occupancy and operating expenses, BofA Securities said in note emailed Monday.

The investment firm also said it lowered its fiscal Q1 adjusted EPS forecast for the company to $2.85 from $2.97 due to shrink pressures on gross margin and increasing expenses related to brand campaigns and store openings. Dick's Sporting Goods is expected to release its fiscal Q1 results late in May, BofA Securities added.

However, BofA Securities maintained its full-year EPS outlook for the company, saying Dick's Sporting Goods' innovation "supports continued dominance." The full-year forecast also reflects a "modest" leverage on cost management and business optimization moves that were completed in fiscal Q4, the investment firm added.

BofA Securities reiterated its neutral rating on Dick's Sporting Goods, with a lower target price of $225 from $245.

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