UBS Raises Price Target on Foot Locker (FL) as Sales Accelerate

UBS reiterated a Buy rating on Foot Locker (NYSE: FL), and raised the price target to $77.00 (from $67.00), as US basketball footwear sales accelerate. Analyst Michael Binetti said that US basketball footwear sales have accelerated to +11% in the July qtr-to-date vs +8% in the April, and that prices should continue to increase.

Binetti commented, "US basketball footwear sales have accelerated to +11% in the July qtr-to-date vs +8% in the April qtr (per SportScan). Price increases should continue with Nike calling out +5% ASP growth in its most recent global futures growth (though N. America footwear ASP's have been up +HSD lately). Importantly, in our recent conversations w/athletic retailers, the category excitement heading into the BTS selling season has clearly been around basketball—given a solid innovation pipe, price increases from Nike (which has ~95% share of US b'ball mkt) and the emergence of a "2nd b'ball brand" with UA's recent Steph Curry line. Our b'ball checks have been positive even after the NBA championships ended in June (when trends have seasonally slowed in the past)."

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 $69.61 yesterday.

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