Brean Capital Raises Price Target on Foot Locker (FL) to $77 Following 2Q
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Brean Capital reiterated a Buy rating on Foot Locker (NYSE: FL), and raised the price target to $77.00 (from $68.00), following the company's 2Q earnings report. FL reported comp growth of +4.7%, better than the consensus of +3.8%. EPS beat of $0.94 vs. consensus estimates of $0.90.
Analyst Eric Tracy commented, "We remain constructive on shares of FL following another solid qtr, which demonstrated the evolving model that we believe supports continued comp performance, improved productivity and material free cash generation. FL's 2Q print came in above expectations Friday, with comps up +4.7% favorable to both our/cons estimates (+3.0%/+3.8%), while continued merch margin expansion also contributed to EPS beat ($0.94 vs. our $0.89, cons $0.90), leading to shares trading up +11%. With comps re-accelerating from levels seen through 1Q earnings call, we think visibility to achieving FY16 comp/EPS guidance +MSD/+DD is decent, given combination of margin, productivity, and capital allocation levers, even against high expectations (cons comp +4.8% in 3Q/4Q). With these same levers supporting in FY17, we think EPS growth sustains, leading to continued multiple re-rating vs. current 13x. We tweak our estimates slightly higher, raise our TP to $77 (up from prior $68)."
Shares of Foot Locker closed at $68.49 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change
Related EntitiesEarnings, Brean Capital
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