UBS Raises Price Target on Foot Locker (FL) to $80; Reiterates Buy
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UBS reiterated a Buy rating on Foot Locker (NYSE: FL), and raised the price target to $80.00 (from $76.00), following the company's 3Q earnings report. FL reported EPS of $1.13, ahead of the Street's $1.11 estimate. FL reported positive traffic in the US in 3Q.
Analyst Michael Binetti commented, "FL reported 3Q EPS of $1.13 (including +$0.02 from a lower tax rate than our model) vs. UBSe: $1.10 and Street: $1.11. SSS increased +4.7% (UBSe: +5.1%, Street: 4.7%) with each month +MSD. By category: footwear +MSD (running +HSD, casual +HSD, basketball slightly negative), apparel +MSD (AURs up, units down). Europe declined more than expected at –LSD in the quarter (we expected flat) driven by weakness at Runners Point/Side Step. Despite consistent read-throughs from competitors about negative mall traffic in the quarter, FL reported positive traffic in the US in 3Q. GM expansion was slightly below our model as well at +10bp YOY (UBSe/Street: +40bp) partly driven by higher promos to drive traffic at Eastbay.com."
Shares of Foot Locker closed at $71.78 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change
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