Foot Locker's Turnaround Story Stands Out, Analyst Suggests Stronger Than Retail Peers
Portfolio Pulse from Priya Nigam
Foot Locker Inc (NYSE:FL) shares continue to rise following strong quarterly earnings. Piper Sandler analyst Abbie Zvejnieks upgraded Foot Locker's rating from Neutral to Overweight and increased the price target from $24 to $33. Zvejnieks believes Foot Locker is well-positioned for the next 6-12 months and could see operating margins expand by over 180 basis points in 2024. The company is expected to benefit from a recovering lower-income consumer base, healthier inventory levels by year-end, and a shift in product assortment towards trending brands like New Balance, Adidas, and Nike, leading to more full-price sales.
December 14, 2023 | 5:09 pm
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Foot Locker's stock has been upgraded by Piper Sandler analyst Abbie Zvejnieks from Neutral to Overweight with a price target increase from $24 to $33, indicating a positive outlook for the company's performance in the next 6-12 months.
The upgrade by Piper Sandler is a strong positive signal for investors, suggesting confidence in Foot Locker's future performance and potential for margin expansion. The increase in the price target reflects an expectation of stock price appreciation, which is likely to influence investor sentiment and the stock price in the short term.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100