Piper Jaffray Remains Bullish on Foot Locker (FL) After Meeting with Management
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Piper Jaffray reiterated an Overweight rating and $72.00 price target on Foot Locker (NYSE: FL) after meeting with management in Germany and the UK.
Analyst Erinn Murphy commented, "We recently met with regional management from Foot Locker in both Germany and the UK. We believe the athletic cycle in Europe is at a much earlier phase than in the U.S. and the strength in adidas is undisputed in the market. While NIKE is still strong, we believe the resurgence of adidas has taken a toll on NIKE's growth rate in the region. We believe FL is well positioned to capture increasing traffic geared towards "athletic trends" in the region, particularly given its service model sets it apart from the local competition. Further, its multi-branded portfolio positions FL in a win-win stance to capitalize on the acceleration of adidas (a greater % of sales in EU vs. US), the ongoing NKE trends as well as brands like Puma that are gaining traction. For context, Europe is ~25% of FL's sales and the major banners are FL, Sidestep and Runner's Point."
Shares of Foot Locker closed at $66.43 yesterday.
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