Wedbush Raises Price Target on Foot Locker (FL), Market Trends Show Strong Demand
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Price: $24.01 --0%
Rating Summary:
16 Buy, 25 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 19 | New: 8
Rating Summary:
16 Buy, 25 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 19 | New: 8
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Wedbush is reiterating its Outperform rating on shares of Foot Locker (NYSE: FL) and is raising its price target from $23 to $26 ahead of its Q1 earnings release.
The firm is raising its Q1 EPS estimate from $0.43 to $0.47 on FL as its checks in the market shows strong demand for athletic footwear and apparel. The company reported a 10% comp for the first 3 weeks of March and Wedbush believes that it underscores the true acceleration in the industry. It is raising its Q1 comp expectation from 5% to 8%.
Wedbush continues to forecast a strong a strong demand for basketball sneakers and states that Nike Inc. (NYSE: NKE) released 51 new basket ball shoes during Q1 with an average price of $139.
An analyst at Wedbush comments, "Typically, we expect apparel margins to trend 1000 bps above those of footwear and as such we see ample runway for FL to drive 150-200 bps of margin gains over the next 1-2 years. We believe much of the improvement can come from the private label business where we have seen an uptick in the combo pack pricing."
For more ratings news on Foot Locker click here and for the rating history of Foot Locker click here.
Shares of Foot Locker closed at $22.90 yesterday.
The firm is raising its Q1 EPS estimate from $0.43 to $0.47 on FL as its checks in the market shows strong demand for athletic footwear and apparel. The company reported a 10% comp for the first 3 weeks of March and Wedbush believes that it underscores the true acceleration in the industry. It is raising its Q1 comp expectation from 5% to 8%.
Wedbush continues to forecast a strong a strong demand for basketball sneakers and states that Nike Inc. (NYSE: NKE) released 51 new basket ball shoes during Q1 with an average price of $139.
An analyst at Wedbush comments, "Typically, we expect apparel margins to trend 1000 bps above those of footwear and as such we see ample runway for FL to drive 150-200 bps of margin gains over the next 1-2 years. We believe much of the improvement can come from the private label business where we have seen an uptick in the combo pack pricing."
For more ratings news on Foot Locker click here and for the rating history of Foot Locker click here.
Shares of Foot Locker closed at $22.90 yesterday.
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