UPDATE: Citi Upgrades Foot Locker (FL) to Neutral

August 19, 2022 8:42 AM EDT
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Price: $31.57 -1%

Rating Summary:
    14 Buy, 24 Hold, 2 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 8 | Down: 9 | New: 24
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(Updated - August 19, 2022 8:42 AM EDT)

Citi analyst Paul Lejuez upgraded Foot Locker (NYSE: FL) from Sell to Neutral with a price target of $38.00 (from $25.00).

The analyst comments "We are upgrading FL from Sell to Neutral and raising our TP from $25 to $38 after the news that former ULTA CEO Mary Dillon is taking over the role of CEO at FL. With FL’s business in a tough spot given Nike’s plan to reduce allocation of premium product, Dillon’s proven leadership should be viewed very favorably by the market. Dillon put ULTA on the map in prestige cosmetics/skincare by gaining access to sought after brands and driving years of strong growth/margin expansion. Her presence may not be enough to reverse NKE’s DTC strategy, but we believe her successful track record makes it more likely FL will forge a lasting, profitable relationship with Nike. We believe FL’s narrative has changed materially with this news, as Dillon will breathe new life into FL. At current (pre-market) levels of ~$38 (which is also our new TP), we believe risk/reward is balanced."

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 $31.98 yesterday.

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