11:28 AM EDT, 03/27/2025 (MT Newswires) -- Dick's Sporting Goods (DKS) has levers to pull, including its ability to capture market share, as it navigates a weak spending environment amid rising trade tensions, Oppenheimer said.

US President Donald Trump late Wednesday announced 25% tariffs on imports of automobiles and certain auto parts. The Trump administration may impose duties on copper imports in the coming weeks, Bloomberg News reported Wednesday, citing unnamed sources.

Previously, Trump said that tariffs due to take effect in April will likely be more "lenient than reciprocal," CNBC reported.

Rising trade tensions and "a now more precarious domestic employment landscape" have further eroded the discretionary spending backdrop, Oppenheimer analysts, including Brian Nagel, said in a client note.

"While (Dick's Sporting Goods) is by no means immune to such pressures, for a number of reasons, we view the company and its equity as relatively compelling, within discretionary," Nagel said.

Those reasons include the athletic goods retailer's ability to capture market share and its "compelling" growth drivers, he added. Other factors that position the retailer well include a solid balance sheet and a financial guidance that leaves room for upside.

Earlier this month, the company said that it expects full-year earnings between $13.80 and $14.40 a share, compared with the current consensus on FactSet for $14.40. Sales are anticipated to be in a range of $13.6 billion to $13.9 billion, with comparable sales growth of 1% to 3%. Analysts are looking for sales of $13.88 billion and same-store sales growth of 2.6%.

The brokerage said Thursday that Dick's Sporting Goods' initial fiscal 2025 guidance allows for "beats and raises" through the year.

"While another beat and raise quarter should prove an incremental near-term positive catalyst for shares, our continued upbeat posture on (Dick's Sporting Goods) is generally more intermediate to longer-term in nature," Nagel said.

Oppenheimer on Thursday affirmed its outperform rating on the stock and a 12- to 18-month price target of $270. It lowered its fiscal 2025 EPS estimate to $14.40 from $14.68 and introduced a 2026 estimate of $15.50, above the $15.46 analysts' view on FactSet.

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