Wells Fargo upgraded Dick’s Sporting Goods to “Overweight” from “Equal Weight,” citing a multi-year recovery story driven by the Foot Locker acquisition and strengthening core operations. Boruchow also pointed to continued strong execution at the legacy Dick’s business DSG, which has advanced to a “stronger position today and in the early-innings of building a compelling fly-wheel (high ROI investment cycle). Boruchow added, “The core DICK’s Sporting Goods business remains attractive as the category leader, delivering +LSD/+MSD growth with a highly defensible moat in omni-channel capabilities, merchandising and partnerships with brands that have driven sustainable improvements in store productivity, margins, and returns.” Wells Fargo believes the shortfall will be due to softness at the Foot Locker segment. Image courtesy Dick’s Sporting Goods