11:08 AM EDT, 09/05/2024 (MT Newswires) -- Dick's Sporting Goods (DKS) "continues to outperform" the sporting goods retail sector in both sales and margins due to strong execution, merchandising and strategy, Morgan Stanley said in a note Thursday.

The firm said that the company's risk-to-reward balance remains favorable while Dick's has raised profit growth assumptions for H2 despite a weaker retail environment.

The next significant catalyst is expected in 2025, with guidance showing further sales growth and margin improvement, Morgan Stanley added.

Morgan Stanley reiterated its overweight rating on the company's stock and kept the price target at $245.

Dick's Sporting Goods' shares were down 2.5% in recent trading.

Price: 215.21, Change: -5.56, Percent Change: -2.52