Dick's Sporting Goods turnaround is likely to bear more fruit soon, according to Wells Fargo. The investment bank upgraded its rating on the sports retailer to overweight from equal weight. It also hiked its price target to $240 from $220, implying 15% upside from Friday's close. "At current levels we are buyers of the risk/reward and are firm believers in the developing multi-year story - led by recovery at" Foot Locker, analyst Ike Boruchow said Monday in a note to clients. Dick's Sporting Goods is trading at 14 to 15 times price-to-earnings for 2027, per the analyst. Shares of Dick's have gained roughly 5% year to date as its subsidiary Foot Locker undergoes an overhaul of its corporate strategy. That shift includes pursuing a store remodeling strategy, bolstering its vendor relationships and making its products more visible across multiple sales channels. DKS YTD mountain Shares are up 5% year to date. As a result, Foot Locker is now seeing multi-year margin upside, "with a return to 7-8% margins on the table…driven by better allocation/merchandising," Boruchow said. However, Dick's stock should ask get a boost as execution at the firm "is in a stronger position today and in the early-innings of building a compelling Fly-wheel," the analyst wrote. Wells Fargo's call falls in line with consensus on the Street. Of the 27 analysts covering Dick's, 16 have a buy or strong buy on the stock, LSEG data shows. Shares of the company rose 1.2% in premarket trading.