Foot Locker (FL) Price Target Raised at Deutsche Bank Following Strong Quarterly Results

Deutsche Bank maintained a Buy rating on Foot Locker (NYSE: FL) and raised its price target to $71.00 (from $69.00). The change follows strong Q1 results. Analyst Paul Trussell thinks fear about a slowdown is basketball provide an opportunity to buy shares at a discount.

"Importantly, this improvement occurred despite a modest industry slowdown in the basketball category. To this end, casual and fashion athletic sneakers as well as certain running models have picked up steam and we believe FL’s performance is an indication of its ability to smartly manage inventory and continue to take advantage of whatever athletic trend has emerged. Moreover, we expect to hear about progress made this quarter on women’s, apparel, e-commerce, and European initiatives," said Trussell.

"Coupled with strong margin performance (up 154 bps YOY to 15.1%), we believe FL will drive double-digit earnings growth for the next few years. Unwarranted fears about a slowdown in the sneaker cycle, or more specifically basketball, provide an opportunity to own FL shares at a discount," added the analyst.

For an analyst ratings summary and ratings history on Foot Locker click here. For more ratings news on Foot Locker click here.

Shares of Foot Locker closed at $64.00 yesterday.

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