11:10 AM EDT, 08/28/2024 (MT Newswires) -- Dick's Sporting Goods' (DKS) fiscal Q2 earnings are expected to top analyst estimates, but a "material deceleration" in trends in H2 is likely to limit a potential upside for its shares, Wedbush said in a note Wednesday.

"Growth is being led by the company's mid-upper income customer demographic skew, differentiated and better access to on-trend products, 'cascading' customer service and other processes from House of Sport to the rest of the chain, and omnichannel initiatives," the investment firm said in its Q2 preview note.

Wedbush also expects the company to raise its fiscal 2024 guidance "by a similar amount that it did just three months ago," driven primarily by the anticipated Q2 beat. The company is scheduled to release its Q2 results on Sept. 4.

However, the firm said the "beat-and-raise quarter" is unlikely to spur excitement among investors as it sees "a material deceleration from [H1] trends against tougher comparisons and the reversal of the calendar shift benefit."

Wedbush is staying neutral on the stock even as it raised its price target to $250 from $230.

Price: 233.97, Change: -2.33, Percent Change: -0.99