UPDATE: Citi Upgrades Foot Locker (FL) to Neutral
- Wall Street ends sharply lower as jobs report cements rate hike regime
- Rebound in Stocks is Limited, Fade Any Further Squeeze; Stay Bullish on Dollar - Citi
- 5 Top AMD Analysts Reflect on Preliminary Results, Shares Down 5%
- Weekly Inflow to Cash of $88.8 Billion Was Highest Since Pandemic - BofA
- Oil jumps 4% to 5-week high lifted by OPEC+ output cut
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."
Shares of Foot Locker closed at $31.98 yesterday.
You May Also Be Interested In
- Exxon Mobil (XOM) Price Target Raised on Stronger Upstream Performance
- Brambles Ltd. (BXB:AU) (BXBLY) PT Raised to AUD14.85 at Credit Suisse
- Realtek Semiconductor (2379:TT) PT Lowered to NT$330 at Nomura/Instinet
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst PT Change, Upgrades
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!