UBS Maintains a 'Buy' on Foot Locker (FL); Awaiting Next Week’s Analyst Day
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Price: $22.45 -1.84%
Rating Summary:
16 Buy, 21 Hold, 4 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 9
Rating Summary:
16 Buy, 21 Hold, 4 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 9
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UBS maintains a 'Buy' on Foot Locker (NYSE: FL) price target raised from $30 to $33.
UBS analyst says, "We are raising FY12E EPS by $0.22 to $2.26 due to: 1) a higher SSS estimate (now +5% for F1Q & FY12 vs 4% prev); 2) better SG&A leverage (+70bp YOY; prev +40bp); and 3) $0.10 from a 53rd week. Our FY13E goes to $2.34 from $2.21. We view FY12 guidance to be conservative—esp guidance for only 30-40bp of GM leverage (implying Buying/Occup. leverage well below past periods of +msd SSS growth)—which we believe will allow FL to raise guidance throughout the year."
UBS analyst expects FL to provide a strategy update and hopefully address/clarify confusion on Europe trends at next week's Analyst Day. UBS also believe FL’s strong SSS trends are being partly driven by long-awaited price increases from Nike (NYSE: NKE) and reiterates a 'Buy' rating on NKE.
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 $28.97 yesterday.
UBS analyst says, "We are raising FY12E EPS by $0.22 to $2.26 due to: 1) a higher SSS estimate (now +5% for F1Q & FY12 vs 4% prev); 2) better SG&A leverage (+70bp YOY; prev +40bp); and 3) $0.10 from a 53rd week. Our FY13E goes to $2.34 from $2.21. We view FY12 guidance to be conservative—esp guidance for only 30-40bp of GM leverage (implying Buying/Occup. leverage well below past periods of +msd SSS growth)—which we believe will allow FL to raise guidance throughout the year."
UBS analyst expects FL to provide a strategy update and hopefully address/clarify confusion on Europe trends at next week's Analyst Day. UBS also believe FL’s strong SSS trends are being partly driven by long-awaited price increases from Nike (NYSE: NKE) and reiterates a 'Buy' rating on NKE.
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 $28.97 yesterday.
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